Oil and gas supplies could take months to return to normal after Iran deal, energy experts say
Experts say more than 10 million barrels a day of shut-in Middle East production will need months of cautious ramp-ups before supply normalizes.
- Despite the expected reopening of the Strait of Hormuz on Friday, experts caution that oil and gas trade will take months to return to pre-war levels, marking only the beginning of a long recovery for the industry.
- Middle Eastern producers have been forced to shut in more than 10 million barrels per day of oil production since the Strait was closed three and a half months ago, requiring slow, controlled restart operations.
- Wood Mackenzie analysts estimate affected fields could return to 70% of production within three months and 90% within six months; Iraq faces slower recovery than Saudi Arabia or the UAE due to Basrah export infrastructure constraints.
- Gas prices remain more than a dollar higher than this time last year, with the average gallon in Connecticut at $4.23, down 10 cents from a week ago and 40 cents from a month ago.
- Daniel Sternoff, senior fellow at Columbia University's Center on Global Energy Policy, stated the speed of evacuation for trapped material remains unclear, as shipping and insurance companies are reluctant to lower prices until the peace deal proves durable.
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216 Articles
The Iran deal is good for Trump, but bad for the rest of us
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US‑Iran deal should see oil and LNG begin to flow again – slowly
US President Donald Trump hailed the deal ending the US-Israel war with Iran with a triumphant message: “Ships of the World, start your engines. Let the oil flow!” he wrote on his online social media platform. But how realistic is a swift resumption of ship movement through the Strait of Hormuz? Oil traders are hopeful. […] The post US‑Iran deal should see oil and LNG begin to flow again – slowly appeared first on Asia Times.
The effects of the closure of the Strait of Ormuz for months will not dissipate so easily. The International Energy Agency (IEA) has cut its forecasts on the global consumption of barbarous oil this year by an additional 700,000 barrels per day compared to those it did in May despite the agreement between the United States and Iran, pending its implementation leading to a normalization in 2027.
Hormuz Fears Ease As Rulers Virtually Sign US-Iran Deal, But Energy Flows Months From Normal
This article was originally published by Tyler Durden at ZeroHedge under the title: Hormuz Fears Ease As Trump, Ghalibaf Virtually Sign US-Iran Deal, But Energy Flows Remain Months From Normal President Trump, Vice President JD Vance, and Iran’s Parliament Speaker Mohammad Bagher Ghalibaf have virtually signed a peace deal to end the U.S. naval blockade of the Strait of Hormuz, Iranian ports, the general Gulf region, and begin 60 days of nuclear…
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