The Iran War - Crisis Averted, But Inflationary Pressures Remain

A 2-week extension to negotiate a cease-fire creates a fragile short-term truce with elevated risk of renewed hostilities. Continued partial or full closure of the Strait of Hormuz keeps inflationary pressures and upside risk to energy prices and supply-chain disruption intact.

Analysis

A 2-week extension to negotiate a cease-fire creates a fragile short-term truce with elevated risk of renewed hostilities. Continued partial or full closure of the Strait of Hormuz keeps inflationary pressures and upside risk to energy prices and supply-chain disruption intact.