The Strait of Hormuz is reopening faster than expected, after the US and Iran signed a memorandum of understanding (MoU) and launched indirect talks in Qatar to discuss the flow of shipping.Global oil prices have fallen back, providing respite to consumers at the petrol pump. For a third consecutive day on Thursday, oil prices dropped about 1 percent, after Qatar said Iran and the US had made progress in discussions about the critical waterway, which handled one-fifth of global oil supply before the US and Israel first launched strikes on Iran on February 28.Recommended Stories list of 3 itemsend of listBut as oil flows suddenly resume, there is alarm over the weakening of oil demand, mainly driven by China – the world’s largest oil importer – slashing imports.Investment banking group Morgan Stanley cut oil forecasts for the second time in two weeks, warning of the risk of a glut – a severe oversupply of crude oil in the global market that outpaces consumer demand.Analysts say such a forecast is contingent on Chinese oil imports remaining at a low level, as well as on the fragile truce between the US and Iran remaining on solid ground.How much have oil flows resumed?The June 17 MoU between the US and Iran triggered a 60-day negotiation period to reach a permanent peace deal that includes the onwards passage of many loaded tankers which had been stranded in the Strait of Hormuz since the start of the war.Under the terms of the interim deal, Iran agreed to let ships transit through …
