DUBAI, June 17 (Xinhua) - Oil prices could take between four and eight weeks to stabilize even if the Strait of Hormuz reopens later this week, as tanker backlogs, elevated insurance costs, low inventories and lingering geopolitical risks continue to support a risk premium in energy markets, the United Arab Emirates (UAE)-based Gulf News reported on Wednesday, citing analysts.

The newspaper said Brent crude has already fallen from wartime highs of nearly 120 U.S. dollars per barrel to around 80 dollars as traders priced in expectations of a U.S.-Iran agreement and the reopening of the key shipping route. However, analysts believe that while futures markets have reacted quickly, physical oil markets will take much longer to normalize.

The Strait of Hormuz handles about 20 percent of global oil and liquefied natural gas trade, the report noted. Analysts say markets will require evidence that tankers can move safely and consistently before removing the remaining geopolitical premium from oil prices.

The report said the crisis has highlighted the world's continued dependence on energy flows through the Strait of Hormuz and may accelerate Gulf countries' efforts to develop pipelines and alternative export routes to strengthen energy security and reduce vulnerability to future disruptions.

The United States, Pakistan and Iran early Monday announced the finalization of a peace memorandum of understanding on ending the war following weeks of negotiations, adding that it will be officially signed in Switzerland on Friday.

U.S. President Donald Trump said on Tuesday that the United States is going to have the Strait of Hormuz fully opened by Friday.