Hormuz Strait closure enters its fourth month, accelerating upward risks for US inflation
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(1) An independent commodity intelligence agency published a blog on Monday, noting that as the impact of the closure of the Strait of Hormuz continues to widen, U.S. inflation is accelerating and is expected to spiral even higher. The strait has now been closed for four months. (2) This view comes from New Normal Consulting chairman Paul Hodges, whose analysis focuses on the link between chemicals and the economy. The blog emphasizes that inflation risks are accumulating and are closely tied to the geopolitical situation in the Middle East. (3) The prolonged closure of the Strait of Hormuz continues to disrupt the global flow of commodities, with upstream cost pressures gradually transmitting to broader price levels, increasing uncertainty in the trajectory of U.S. inflation.
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