Fiji awaits benefits from USA-Iran deal

Despite the USA-Iran deal being signed, the Fijian Competition and Consumer Commission (FCCC) has not changed its advice to customers.

FCCC earlier had urged consumers not to expect an immediate drop in fuel or LPG prices.

The United States of America and Iran reached their peace deal earlier this week, which received praise from Prime Minister Sitiveni Rabuka, saying it would bring relief to Fiji and other developing nations that have been hit hard by the closure of the Strait of Hormuz.

“Of course, everybody welcomes it. The world welcomes it,” Mr Rabuka said this week.

“Particularly the developing areas of the world that rely so much on fuel that’s coming in from the Middle East, where we blockade in the Strait of Hormuz.

“It has been very, very difficult. I congratulate all the leaders who have put their hands together, heads together, to come up with this peace accord.”

The deal, announced on June 15, extends the existing US-Iran ceasefire for 60 days, with the goal of reaching a permanent end to the war in upcoming talks. The deal was signed on Wednesday (Thursday in Fiji) earlier this week.

The conflict began in February when Israel and the United States launched airstrikes against Iran, which responded by closing the Strait of Hormuz and disrupting global trade.

The strait is one of the world’s most critical oil shipping routes, and its disruption has driven up fuel costs globally, including in Fiji.

In a media release earlier this week, FCCC welcomed reports of the US-Iran peace agreement, saying it could lead to easing pressures on global energy markets.