ECB's Nagel says no inflation relief in sight even if Hormuz Strait reopens soon

ECB policymaker Joachim Nagel said there would be no immediate relief from the energy-driven inflation spike even if the Strait of Hormuz reopens soon, because oil supply could take months to recover to pre-war levels. The comments imply persistent inflation pressure from higher energy prices and a slower normalization path for oil markets. The message is hawkish for rates and broadly negative for risk assets sensitive to inflation and energy shocks.

Analysis

ECB policymaker Joachim Nagel said there would be no immediate relief from the energy-driven inflation spike even if the Strait of Hormuz reopens soon, because oil supply could take months to recover to pre-war levels. The comments imply persistent inflation pressure from higher energy prices and a slower normalization path for oil markets. The message is hawkish for rates and broadly negative for risk assets sensitive to inflation and energy shocks.