Why the Crisis Persists After Strait Reopening

The Hormuz Strait movement has resumed following an agreement between the United States and Iran, easing threats to global energy supplies. Although reopening the strait promises an economic breakthrough, global growth will continue to be affected due to ongoing supply chain disruptions and rising shipping and insurance costs, with expectations that oil prices will remain above $75 until the end of 2027. Additionally, the recovery in energy markets will be gradual, as inflationary pressures and growth challenges persist in Europe and the United States.

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