Kenyans could soon see relief at the pump after the United States and Iran announced a deal to end the Middle East war and reopen the Strait of Hormuz.
The Strait, blocked by Iran since February 28, handles about 20% of global oil shipments. Its closure drove up crude prices, which directly hit Kenyan motorists and pushed inflation higher in recent months.
Energy analysts say reopening Hormuz should ease global oil supply pressure. EPRA’s next review could reflect lower landing costs if crude drops as expected.
Reduced oil import bills may ease dollar demand, helping stabilize the shilling after months of pressure.
The US President Donald Trump confirmed that "the deal with the Islamic Republic of Iran is now complete. Ships of the world, start your engines. Let the oil flow” as Signing is set for Friday in Switzerland.
Iran says the deal puts an “immediate end” to the war, with further talks in two months. However, Israel’s Defence Minister Israel Katz said Israeli forces would remain in Lebanon, Syria and Gaza indefinitely, raising questions about how complete the ceasefire will be.
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