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Mon, 15 Jun 2026

Mon, 15 Jun 2026 How could the US-Iran deal affect oil prices and the cost of food?

Experts warn the impact of the war will continue to affect the global economy for months to come.

* A framework deal has been agreed between the US and Iran, with President Trump announcing that ships can now move through the Strait of Hormuz.
* However, ship-tracking data shows that traffic levels remain low in the Strait, and it's unclear when normal shipping will resume.
* The deal is seen as a fragile truce or a durable settlement by economists, and it may take time for oil flows to return to pre-war levels.
* Oil prices have fallen since the announcement, with Brent crude dropping to $83.55 a barrel from its peak of around $120.
* Experts warn that there will be volatility in the lead-up to the deal being signed, and that a full-scale peace agreement may still be a long way off.
* Normality in the system, including prices, could return by the end of the year if a full ceasefire is agreed upon.
* The deal may also help ease pressure on fertiliser markets, but it won't be immediate.
* The Iran war has affected economies around the world, pushing up fuel prices and leading to a pick-up in inflation.