Hormuz Closure Inflation Gold Hedge
Supply chain disruptions and rising freight costs from Hormuz closure will increase inflation pressures on commodity prices
Too little corroboration in the last 3 days to call a trend (4 articles). Watching for it to gain traction.
Mainstream financial press is carrying this — attention has broadened beyond specialist outlets.
"Cooling crude oil prices are putting pressure on the US treasury yields and the US Dollar, as a smooth supply of crude oil prices is expected to contain inflation, and hence the US Fed rate hike looks unlikely in such a scenario."
"Precious metals also rose on Wednesday on the improved prospects for the reopening of the Strait of Hormuz after Axios reported that the US, Iran and Oman were nearing an interim agreement to reopen the waterway. The reopening of the strait would boost global oil supplies and pressure oil prices, thus easing inflation expectations and reducing the chances of tighter monetary policies by the world's central banks."
"Our base case is for the US/Iran conflict to end and Hormuz flows normalizing and, with this, lower real interest rates and a weaker dollar and stronger investor interest in gold returning."
"Any prolonged closure of the strategic waterway could have a cascading impact on Indian exporters by increasing insurance premiums, shipping costs, and transit time for cargo bound for West Asia and Europe. A prolonged closure of the Strait of Hormuz would once again test businesses through higher inflation, rising freight costs and pressure on margins."