One condition of the US and Israel’s two-week ceasefire agreement with Iran is that ships must be able to safely use the Strait of Hormuz, the route through which approximately 20% of the world’s oil and liquified natural gas supplies travel.
In theory, the deal should cut the prices of fuel worldwide, as well as allowing essential supplies of fertiliser, helium and other goods to reach businesses. But the fragility of the ceasefire is leaving markets uncertain, and prices remain volatile.
Will the ceasefire eventually help lower costs? And if so, when? Sean Farrington, presenter of the BBC’s Wake Up To Money, joins us to explain.
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00:00 Introduction
01:49 Iran ceasefire impact on shipping
03:15 What is stuck in the Strait of Hormuz?
04:06 Iranian conditions on reopening the Strait of Hormuz
05:50 Impact on Asia of the Iran War
07:07 The rising fuel prices
07:56 Why oil prices seem to drive inflation
08:51 Food inflation caused by fertiliser prices
10:31 Concerns over cost of living
12:17 Impact on global interest rates
14:35 Why the US isn’t immune to oil price rises
17:07 Who is doing well from the crisis?
18:17 Things will still take ‘months to get back to normal’