Oil Traders Doubt New Iran Deal Will Bring Immediate Relief

Crude oil prices have plummeted to around $80 per barrel, following expectations that a US-Iran deal will reopen the Strait of Hormuz.

This optimism, however, is increasingly unjustified as the global energy market has become even more precarious in recent months.

The deal, which could grant Iran some influence over shipping through the strait, is seen as a compromise by some Gulf producers who are eager to restore their lost oil and gas revenue.

But with Iran's hand strengthened, global refining capacity reduced, inventories depleted, and potentially vulnerable chokepoints on the rise, the market's hopes for rapid rebalancing appear overly optimistic.