US-Iran peace deal signed, energy flows likely to be restored
New Delhi, June 18: Global energy flows are expected to be restored soon with the likelihood of reopening of the Strait of Hormuz as the US and Iran have signed an initial agreement to end the war.
Restoration of energy flows would mean decline in international crude oil prices, which have already been sliding ever since US President Donald Trump made the announcement on June 14 about intention to sign the pace deal with Iran.
The agreement, signed by Trump and Iranian President Masoud Pezeshkian, includes reopening the Strait of Hormuz as one of the elements.
The deal also includes a $300bn (£224bn) plan for “reconstruction” of Iran and an end of “all types of sanctions” imposed on it by the US.
However, the issue of Iran’s nuclear programme, cited by Trump as the main reason for the war, does not feature in the deal.
Trump, while signing the deal in France on the sidelines of the G7 summit, justified his action, saying it was aimed at averting a global economic “bedlam”.
He said the war had caused economic crises around the world and 500 million dollars were being lost every day.
“We were running out of reserves,” he said in an interaction with journalists after signing the deal.
Soon after, Pezeshkian also signed the document in Tehran.
Iran’s parliamentary speaker and key negotiator Mohammad Bagher Ghalibaf told state media his distrust of the US remained, and Iran’s “finger is on the trigger”.
“If the enemy does not understand the language of logic, we will enter again with the language of power,” he told Iran’s Fars Media.
The US and Israel launched the war on Iran on February 28 with the joint air strikes, assassinating Supreme Leader Ayatollah Ali Khamenei and several other top government and military officials.
A ceasefire was declared in early April after which the US and Iran entered into indirect negotiations to reach an agreement, keeping Israel out of it.
However, despite the ceasefire, a blockade was imposed by both the countries on the Strait of Hormuz, which accounts for a large portion of international energy flows.
This caused major energy crisis and price rise around the world, leading to intense pressure on economies of many countries, including India. (BVI)
