Commercial shipping through the Strait of Hormuz could resume only several months after the US and Iran reach an agreement, analysts say, Bloomberg reports.

They predict that it will take a long time for cargo traffic to return to pre-war levels, as the confidence of shipowners, insurers, and refiners must be regained.

Many buyers have already adapted to the disruptions by finding alternative sources and routes for supply.

According to Haris Khurshid, Chief Investment Officer at Karobaar Capital Management, LP, the market tends to view the reopening of the aforesaid waterway as a momentary switch, but in reality it is more of a long-term process. The analyst noted that the reopening of the strait and the regulation of trade flows are two different things. Many buyers have spent months finding alternative routes, suppliers and supplies, and may not be in a hurry to return to the Strait once it reopens, Khurshid added.

Charu Chanana, Chief Investment Strategist at Saxo, also believes that despite the positive sentiment surrounding the news of the reopening of the Strait of Hormuz, the practical reality is likely to be much more complicated. Mine clearance, insurance costs, port congestion, and geopolitical risks could slow down oil flows, making them slower than expected, Chanana said.