Impact of the US-Iran agreement on global oil prices and inflation

Professor Marios Zachariadis of the University of Cyprus has analyzed the recent agreement between the US and Iran as a significant development. The deal involves a temporary two-month truce aimed at opening the Strait of Hormuz, though clearing maritime mines will require time. Brent crude oil prices have fallen below 80 dollars per barrel as a result of the anticipated normalization of oil transport. While lower fuel prices at pumps are expected in the coming weeks, the reduction in food and transport costs will likely take longer to manifest. Despite these market adjustments, inflationary pressures are expected to persist for the foreseeable future. The agreement is viewed as a partial stabilization measure, but it does not fully eliminate ongoing economic uncertainty. The professor noted that the prolonged high price period has already impacted the broader economy.