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Analyst: Middle East Conflict May Push US Summer CPI to 4%
Summary: According to reports from Bloomberg Economics, including analyst Ziad Daoud, as the deadline approaches for US President Trump's suspension of so-called retaliatory tariffs, rising geopolitical risks and the potential escalation of tariffs in the coming weeks are intertwined. The prolonged Middle East conflict's biggest impact on the economy may be a surge in oil prices. ...
According to reports from Bloomberg Economics, including analyst Ziad Daoud, as the deadline approaches for US President Trump's suspension of so-called retaliatory tariffs, rising geopolitical risks and the potential escalation of tariffs in the coming weeks are intertwined. The prolonged Middle East conflict's biggest impact on the economy may be a surge in oil prices. In an extreme scenario of the closure of the Strait of Hormuz, crude oil could soar to over $130 per barrel. This could push the US summer CPI close to 4%, prompting the Federal Reserve and other central banks to delay future interest rate cuts.
The report states that any significant increase in oil or natural gas prices, or trade disruptions caused by further escalation of conflicts, will be another constraint on the global economy.
