Energy prices are expected to remain elevated for months following a US-Iran agreement to end the war and reopen the Strait of Hormuz. Experts warn that the slow pace of resuming operations and meeting global demand means relief will not be immediate.
The prolonged period of high energy prices will continue to impact global economies, particularly commodity-importing nations in Asia, and contribute to sustained inflation. The slow recovery of supply chains and production means consumers and businesses will face higher costs for longer.
Energy prices are expected to remain elevated for months following a US-Iran agreement to end the war and reopen the Strait of Hormuz. Experts warn that the slow pace of resuming operations and meeting global demand means relief will not be immediate. Ships loaded with crude oil have been stranded in the Persian Gulf for over three months due to the conflict, impacting approximately a fifth of global oil and gasoline supplies. Oil prices saw a slight decrease following the deal announcement but remain significantly above pre-war levels. Resuming shut-in oil production and restarting energy investments will be a slow process, potentially taking months or even a year for some regions, as companies await stable conditions and insurance.