German central bank urges caution after Iran deal

The German Central Bank warns that early optimism about a breakthrough in oil prices and inflation expectations following the framework agreement between Iran and the United States is unwarranted. It points out that the resumption of navigation in the Strait of Hormuz could take months, and some production facilities have sustained damage. The bank also forecasts that German economic growth will remain limited at 0.5% this year, with the possibility of rising to 1.4% by 2028, amid ongoing inflationary pressures and rising energy costs.

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