The deal between America and Iran to end the four-month war in the Middle East brings with it the prospect of an end to the economic turmoil which has seen the price of items from petrol to foreign holidays soar.
At the heart of the expected signing on Friday of the US peace agreement with Tehran is the quid pro quo for Gulf countries, and the rest of the world, that would see the reopening of the Strait of Hormuz – the maritime chokepoint whose closure has throttled a substantial portion of the world’s supply of oil, gas and other vital commodities.
The unblocking of the strait, behind which at least 1,250 vessels have been trapped since the US-Israeli strikes on 28 February, would restore a sea route which had carried about a fifth of the world’s oil and gas supply, including about 40 per cent of Europe’s jet fuel.
Shorts
The result is a potential reversal of months of bad news for British consumers, bringing with it falling fuel prices and an easing of supply chain constraints. As Donald Trump put it on his Truth Social platform on Sunday: “Ships of the World, start your engines. Let the oil flow!”
