There may be a ceasefire in the Iran war, but analysts caution that investors shouldn’t expect the global economy and markets to return to normal soon.
The announcement of a two-week ceasefire—and negotiations to bring about a permanent conclusion to the war—boosted stock markets and sent oil prices falling. But questions remain over how talks will progress, whether the Strait of Hormuz can remain reliably open, and how quickly shuttered energy production can resume. In addition, the substantial damage to energy and industrial infrastructure in the region will mean some supply chains, such as those for liquified natural gas or aluminum, could take months or years to rebuild.
This post originally appeared at Morningstar.