On Wednesday evening, President Donald Trump signed a Memorandum of Understanding with Iran, re-opening the Strait of Hormuz and ending a 110-day US-Iran war. However, experts warn that consumer gas prices are unlikely to drop any time soon due to ongoing safety concerns and potential new tolls.

The global oil supply-demand balance has been disrupted, meaning that for now, consumers should expect higher prices for everyday products dependent on oil-based materials. Crude oil prices have fallen slightly since the announcement but remain volatile, with predictions of continued inflation.

Meanwhile, the safest shipping routes are still unclear and mining clearance is uncertain. Michelle Wiese Bockmann from Windward suggests that de-mining could take between six weeks to six months. The Memorandum did not provide enough detail on how ships will navigate through this period of uncertainty.

The war might have permanently transformed global shipping, as Iran now understands it can shut down the strait at some cost. It remains unclear whether Iran will impose tolls for passage through the Strait, a development that could set a worrying precedent for global trade.