The first order effect of The US-Iran peace agreement.

[CTO114]

The first order effect of the US-Iran agreement has to be cheaper oil. Obviously, the markets reacted positively as part of the agreement includes reopening the Strait of Hormuz, an important trade checkpoint.

As expected oil price dropped, with traders sharply removing the so called "war premium".

What happens when there's a global realization that energy scarcity was political rather than physical?

For months oil prices reflected fear. The peace agreement reduces uncertainty allowing; more oil exports, lower shipping costs and reduced energy inflation.
 
The bigger story is that the world economy runs on predictability. A stable oil route may be worth more than millons of additional barrels because businesses can invest confidently again!