The two countries agreed to the 11th-hour proposal, announcing a deal less than two hours before US president Donald Trump’s deadline for Tehran to reopen the Strait of Hormuz.
The effective closure of the waterway over the past month triggered a massive spike in the price of oil and natural gas, hitting economies across the globe.
Following the announcement of the deal, oil fell 14pc to $93.93 a barrel, while natural gas dropped 17pc. But the threatened spike in energy costs may still be present, households have been warned, despite the conditional re-opening of the strait.
Dr Craig Lowrey, principal consultant at energy analysts Cornwall Insight, said: “A ceasefire can ease some of the immediate pressure on gas markets, but it does not wipe the slate clean.
Significant damage to gas infrastructure means supply constraints will continue
“The announcement of a two‑week ceasefire has pushed gas prices lower, but they remain above pre‑conflict levels.
“If the Strait of Hormuz opens, and stays open, that would help ease prices further.
“However, this is not just about transport. Significant damage to gas infrastructure means supply constraints will continue.
News in 90 seconds – Thursday, April 9
“While Liquefied Natural Gas [LNG] shipments are expected to resume, some of Qatar’s LNG capacity will take years to fully rebuild.
“That loss of capacity puts pressure on the global market and keeps it vulnerable to shocks.
“As a result, even with a ceasefire in place, wholesale gas prices are likely to stay elevated for some time.”
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Vehicles queue at a filling station in Bangladesh, one of the many countries worldwide hit by fuel shortages. Photo: Reuters
The head of the International Energy Agency said the global energy crisis could accelerate a shift towards renewable and nuclear power across the world.
Fatih Birol said the current shock, driven by Iran’s closure of the Strait of Hormuz in retaliation for the attack, would reshape the global energy system.
“There are reasons to be optimistic,” Mr Birol said in an interview with Le Figaro, arguing that the crisis would speed up investment in cleaner energy sources.
Renewables such as solar and wind could be deployed relatively quickly, he said, meaning many countries could begin shifting away from fossil fuels within months.
He cautioned, however, that this would not resolve the current crisis.
“It will take years,” he said, “but the geopolitics of energy will be profoundly transformed.”
The world has never experienced a disruption to energy supply of such magnitude
Mr Birol said the scale of the disruption was unprecedented, describing it as more serious than the crises of 1973, 1979 and 2022 combined.
“The world has never experienced a disruption to energy supply of such magnitude,” he said.
Member nations of the International Energy Agency are already releasing strategic reserves in an effort to stabilise markets.
While the impact was set to be felt globally, Mr Birol warned that developing nations were particularly vulnerable.
“They will suffer from higher oil and gas prices, higher food prices and a general acceleration of inflation,” he said.
He further warned of the risk of a “black April” if the strait continued to remain closed, with global markets potentially losing far greater volumes of oil and refined products.
