The US and Iran could have a deal. How quickly will things go back to normal?
Summary
The US and Iran have agreed on a framework deal aiming to end hostilities and reopen the Strait of Hormuz, a vital route for oil and gas shipments. However, experts say it will take time for shipping and oil supplies to return to normal, and the effects on global oil prices and the economy may last for months.Key Facts
- The US and Iran reached a framework deal to end conflict and reopen the Strait of Hormuz.
- The strait has been closed to most shipping since February, disrupting global oil and gas supplies.
- Only a few ships have passed through the strait since the deal announcement.
- About 200 vessels remain stuck in the Persian Gulf due to safety concerns like sea mines and drone strikes.
- Shipping companies remain cautious and hesitant to send ships through the area quickly.
- Before the war, about 20% of the world’s oil and liquid natural gas shipped through the strait.
- Oil prices rose sharply after the conflict began and remain higher than before the war.
- Experts say production and shipping need time to return to full capacity, and insurance costs for ships may stay high.
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