Oil prices dropped Monday after the Iran war deal reopened the Strait of Hormuz, but experts caution that high gasoline prices and supply disruptions will persist for months. The slow process of shipping and refining, plus security doubts, mean the full effect won't be seen immediately.
- Brent crude fell $3 a barrel; U.S. benchmark dropped $4.
- Stranded tankers must exit the strait before new ones can load. - Some producers like Iraq may take up to a year to restart shut-in fields.
- Investment in energy systems halted during the closure. Despite the price drop, oil remains well above pre-war levels, and the timeline for a full return to normal supply remains uncertain.