US and Iran deal may ease energy markets, but price relief could take time

In an article published by Newsweek, Dr. Carole Nakhle, CEO of Crystol Energy, shared her views on what a potential deal between the United States and Iran could mean for oil flows and gasoline prices. While the agreement has raised hopes that energy markets may begin to stabilize, the path back to normal conditions will depend on whether the disruption was mainly related to shipping through the Strait of Hormuz or whether deeper damage to energy infrastructure has occurred.

Dr. Nakhle explained that if the disruption was primarily linked to shipping rather than physical damage to oil infrastructure, oil flows could normalize relatively quickly. However, the recovery may still be shaped by how traders, insurers and shipping companies reassess the security environment following months of heightened geopolitical risk. Market confidence will therefore play an important role in determining how quickly energy flows can return to more stable levels.

On gasoline prices, Dr. Nakhle noted that the impact on consumers will depend on how much of the recent increase was driven by geopolitical fears rather than actual supply shortages. If the risk premium fades, consumers could start seeing relief at the pump within weeks. However, she cautioned that a return to preconflict price levels is not guaranteed, highlighting that any recovery in energy markets is likely to depend on both physical supply conditions and the pace at which confidence returns.