The United States and Iran have agreed to a two-week ceasefire, with Iran pledging to reopen the Strait of Hormuz.
Oil and gas prices plummeted following news of the agreement, which paves the way for a potential resumption of energy supplies through Hormuz. This critical waterway, through which about one-fifth of global oil and LNG supplies typically flows, has been effectively shut for the duration of the near six-week conflict.
Iranian Foreign Minister stated that “for a period of two weeks, safe passage through the Strait of Hormuz will be possible via coordination” with Iran’s military, provided that attacks on its territory are halted.
Even if the war ends following an agreement between the United States and Iran, disruptions are expected to persist in the long term. Several Gulf oil and gas producers have reported damage to their production infrastructure since the start of the war, stating that it would take months to resume normal operations and return to pre-war production levels, even if the conflict stops and Hormuz reopens immediately.
The war in the Middle East led to the steepest monthly oil price increase in history in March 2026, with a rise of more than 50% for Brent and 69% for WTI.