Oil, gas prices to stay elevated even after Iran ceasefire: Experts

ISLAMABAD: Experts say it could take a long time for oil and gas prices to return to pre-war levels despite the announcement of a fragile ceasefire between Iran, the US, and Israel.

Iran had closed the Strait of Hormuz in response to US and Israeli attacks, which is a key route connecting the Gulf to the Gulf of Oman.

About 20% of the world’s oil and gas is transported through this route. The closure and attacks on energy infrastructure in the region have not only increased energy prices but also those of related products such as helium and fertilizer, affecting the global economy, especially in developing countries in Asia and Africa.

Experts say that for market stability, it is necessary for the shipment of goods through the Strait of Hormuz to resume on a regular and continuous basis.

At present, the situation is uncertain, and it is difficult to predict how long it will take for prices to return to normal.

According to statistics, before the war, 120 to 140 ships used to pass through this route daily, but in recent days this number has decreased drastically to a few ships, which has severely affected supply.

In addition, there are some concerns that prices may remain higher due to possible increases in fees and insurance costs on ships by Iran. However, according to experts, the real problem is not the fees but the restoration of supply.

The International Monetary Fund (IMF) has also warned that the pace of global economic growth may slow down, even if the ceasefire holds.