Italy predicts energy prices to fall soon after US-Iran peace deal

Italy’s Minister of Environment and Energy Security, Gilberto Pichetto Fratin, said global energy prices could fall soon after a US-Iran peace deal is signed.

“If everything goes smoothly, the positive impact will be felt immediately. The commercial speculation-driven price factors will disappear, and as supply increases, prices will drop,” Fratin told Italian newspaper Corriere della Sera in an interview published on Monday.

He also expressed hope that negotiations would lead to a ceasefire and peace agreement.

However, Fratin found it difficult to predict how much energy prices would fall, as issues regarding tariffs on ships passing through the Strait of Hormuz remain unresolved.

“We don’t know how long it will take to restore everything. I think it will take months, possibly years, to return to normal,” he added.

Meanwhile, US Secretary of State Marco Rubio said America has a strong chance of reaching a temporary nuclear deal with Iran.

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

This blockade has also impacted oil export and production levels, leading to higher fuel prices in most countries worldwide.