Oil and gas prices fell as the US-Iran truce pointed towards the freer flow of fossil fuels through the Strait of Hormuz.
Several tankers passed through the waterway, which has in effect been closed for months. Multiple outlets reported that the US would allow Tehran to sell its oil freely, sending crude prices to below the symbolically important $80 mark. European gas prices also fell sharply, giving the continent a chance to restock ahead of winter, Goldman Sachs economists noted.
However, the longer-term consequences could be more profound and bifurcated, a Reuters columnist argued, with governments increasing their support for electrification and renewables, as well as ramping up purchases of coal to reduce reliance on Middle East transit routes.
