Oil Markets Need More Than a Peace Deal to Recover

AI Summary

The Iran framework agreement caused an immediate boost in markets with increased shares and a dip in oil prices. However, the sustainability of economic gains heavily depends on increased shipping traffic through the Strait of Hormuz, where vessel activity is beginning to revive.

The Iran framework agreement gave an immediate boost to markets, with shares rising and oil prices dipping. But whether this translates into durable economic gains will largely depend on shipping in the Strait of Hormuz. There were signs of traffic beginning to revive on June 18 in the hours immediately after the US and Iranian presidents signed a memorandum of understanding to end the war, according to Windward, a maritime intelligence company. Speaking in an online briefing, Windward chief analyst Michelle Wiese Bockmann said 18 vessels had transited…