The talks between the US and Iran boost market sentiment, but a mere agreement is not enough to quickly restore market normalcy.

Although analysts warn that only one agreement is not enough to restore normalcy to the global energy system, the oil market is responding positively to signs of a potential agreement between the U.S. and Iran. According to data from Sparta Commodities, traders expect that approximately 100 million barrels of crude oil currently stranded near the Strait of Hormuz could potentially return to circulation relatively quickly, temporarily increasing supply in the spot market and easing concerns about recent supply shortages. However, Senior Analyst June Goh of the company pointed out that "fundamentally, the overall market fundamentals have not changed." Even if the Strait of Hormuz were to immediately reopen, it may still take three to six months to fully restore oil production and logistics networks; this means that global markets will still have to continue consuming existing inventories until Middle Eastern oil production is back online completely.