A deal to reopen the Strait of Hormuz is "less about geopolitics and more about inflation”, but normal service is not expected to resume for some time, according to economists.
US President Donald Trump and Iran's Supreme National Security Council confirmed the text of a memorandum of understanding on Sunday (14 June), aimed at reopening the Strait of Hormuz, through which roughly 20% of the world's oil supply flows. It is set to be signed by both parties in Switzerland on Friday (19 June). Iran closed the Strait when conflict with the US and Israel broke out in late February, causing global inflation to spike and the OECD to downgrade its global GDP growth figure for 2026 from 3.4% to 2.8%. Previous predictions for central banks to embark on a cycle of i...
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