The world heaved a sigh of relief when the United States and Iran announced a rapprochement last week, which halted the four-month-old war that the former and Israel had waged against Iran. Four earlier attempts had ended up hollow. But the new agreement will span 60 days, in the first instance.

The pact, mediated by Qatar and Pakistan in Switzerland, embodies much more than the cessation of hauling missiles at each other and freezing of trade. Its real test lies, in our opinion, in producing the critical “roadmap towards reaching a final deal within 60 days,” as stated in the joint statement of the mediators, which also lauded the steps taken so far.

And with the Strait of Hormuz now open for the free movement of oil vessels, oil prices have dropped to pre-conflict levels, giving a significant reprieve to countries that depend heavily on imported oil.

The agreement also involves Israel’s ceasefire with Hezbollah in Southern Lebanon. The latter embroiled itself in the conflict immediately after Iran’s Supreme Leader, Ayatollah Ali Khamenei, was killed by an Israeli strike. Their irreconcilable differences are so deep that a day after the US-Iran ceasefire was brokered, Israel’s military offensive killed 67 persons in Lebanon for its claim of a newly discovered underground military fortress.

Five persons equally died during Hezbollah’s retaliatory action, as it vows that each inch of Israel’s further expansion or seizure of its territory within this period would be fiercely resisted.

The triangular peace deal is a result of mediation by Qatar and Pakistan, which has been ongoing in Switzerland. This will be the first time in years that oil has been allowed to flow through the Strait of Hormuz without a blockade.

According to the International Energy Agency (IEA), a blockade of the Strait would be a significant blow to the global oil market. In fact, it caused the greatest historical disruption to the international oil market.

The agreement also has a provision that would allow the implementation of a mechanism that would see Iran's nuclear facilities monitored by the International Atomic Energy Agency (IAEA).

So far, Iran has reaffirmed its commitment to the agreement by stating that it would not procure or develop nuclear weapons.

The deal also includes a provision that would see the United States provide Iran with at least $300 billion for post-war reconstruction and economic development.

However, experts are cautious in their optimism, citing concerns about oil stockpiled in storage tanks and on board a number of ships during the war.

They worry that if this stock gets exhausted, supply chain disruptions might resurface, since production has tanked for long, particularly in the major producing states impacted by the war.

Oil sector experts are also concerned about oil facilities in the Gulf states that were destroyed during the war.

These facilities were destroyed as targets of Iran’s retaliatory actions to US’ military aggression and attack of Tehran.

The affected countries include Saudi Arabia, Qatar, Jordan, Oman, United Arab Emirates (UAE), Bahrain, and Kuwait, who accused of complicity by hosting US military bases.

Communication lines have also been established between the US and Iran for the clearance of possible misunderstandings that might arise within this period.

This guardrail is critical.

It is worth noting that the agreement's immediate impact is the stabilisation of the energy sector, with the lowering of crude oil prices at the international market to pre-conflict levels.

From $118 per barrel at the peak of the conflict, it is now vacillating between $79 and $72.48 per barrel.

Gasoline pump price in the US that went as high as $5 per gallon now costs about $3.93 per gallon.

A total of 20 per cent of global oil sold is transported through the Strait of Hormuz.

Its blockade, according to the International Energy Agency (IEA), caused the greatest historical disruption to the international oil market.

As of last week, a maritime intelligence firm, Kpler, told the BBC that from 18 June, 284 ships had passed through the Strait, with crude, Liquefied Natural Gas and fertiliser.

For a Strait through which 100 ships passed daily before the conflict, the prevailing scenario remains a cold comfort.