Analysis: Oil prices are unlikely to return to pre-U.S.-Iran conflict levels in the short term

ME News Report, April 9 (UTC+8), multiple European financial institutions released reports on the 8th predicting that international oil prices are unlikely to fall back to pre-U.S.-Iran conflict levels in the short term, and the market should pay attention to the passage through the Strait of Hormuz and the recovery of infrastructure in the Middle East. ING Group stated that the news of the U.S. and Iran agreeing to a two-week ceasefire has somewhat alleviated market concerns about long-term oil supply disruptions, causing international oil prices to drop below $100 per barrel. The future trend of oil prices will depend on whether negotiations can reach a lasting agreement and whether shipping levels through the strait can return to normal. It is expected that the market will continue to fluctuate during negotiations. UBS Group stated that it is unclear when and to what extent shipping through the strait will recover, as some oil tankers need time to replan routes. Once passage through the strait is blocked again, energy prices could rebound rapidly. Moreover, even in optimistic scenarios, infrastructure repair and production recovery will take weeks or even months. Therefore, energy prices are unlikely to return to pre-conflict levels in the short term. (Source: ODaily)