Hormuz Strait Tensions Ease, Global Energy Prices Could Fall

Italy’s Minister for Environmental Protection and Energy Security, Gilberto Pichetto Fratin, said global energy prices could fall shortly after a peace agreement between the United States (US) and Iran is signed.

‘If everything proceeds smoothly, the positive effects will be felt immediately. Commercial speculation-driven price factors will vanish, and prices will drop as supply increases,’ Fratin told Italian newspaper Corriere della Sera, published on Monday, 25 May 2026.

On one hand, the minister expressed hope that negotiations would lead to a ceasefire and peace deal.

On the other hand, Fratin found it difficult to predict the extent of potential price drops, as issues regarding tariffs on ships passing through the Strait of Hormuz remain unresolved.

‘We do not know how long it will take to restore everything. I think it will take months, possibly years, to return to normal life,’ he said.

Meanwhile, US Secretary of State Marco Rubio stated that America has a strong chance of reaching a temporary nuclear agreement with Iran.

Escalating tensions over Iran have caused a de facto blockade of the Strait of Hormuz, a critical route for oil and liquefied natural gas supplies from Persian Gulf nations to global markets.

Furthermore, the blockade has affected oil export and production levels, resulting in higher fuel prices across most countries worldwide.