New Delhi: The US-Iran peace agreement and the subsequent reopening of the Strait of Hormuz could help ease global energy supplies, lower crude prices and provide relief to India by bringing down its import bill, market analysts told ThePrint.
Global oil prices fell sharply Monday after US President Donald Trump announced that an agreement had been reached with Iran, raising hopes of a broader deescalation in the Middle East and the restoration of normal shipping through one of the world’s most important energy corridors.“The Deal with the Islamic Republic of Iran is now complete,” Trump wrote on his Truth Social platform shortly after Pakistani Prime Minister Shehbaz Sharif, whose country reportedly played a mediating role, announced that a breakthrough had been achieved.
The memorandum of understanding is scheduled to be formally signed in Switzerland on Friday, Pakistan announced.Markets responded swiftly to the news. According to Reuters, Brent crude futures fell by around 5 percent on Monday to about $83 a barrel, their lowest level since March, as fears of prolonged supply disruptions eased down.The Strait of Hormuz handles roughly one-fifth of global oil trade, making any disruption a major concern for energy importing countries, including India.At an inter-ministerial briefing on the West Asia conflict Monday, Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, welcomed the development.“If the issue is resolved then it’s good for everyone. The supplies will definitely improve,” Sharma said.
