Hormuz reopening cuts oil to $80, but inflation hit may linger for months
Why it matters: Analysts and the World Bank expect delayed pass-through to food, gas and freight even as Gulf shipping recovers.
The reopening of the Strait of Hormuz has eased the immediate threat to global energy supplies and pushed oil back to about $80 a barrel, but economists say the damage from nearly four months of war will be slower to reverse. Brent crude has fallen sharply from a March peak near $118 after the United States and Iran signed a memorandum to reopen the waterway. Analysts at Capital Economics and Standard Chartered said physical supply and freight flows could take months to normalize as vessels clear a backlog. The World Bank expects global inflation to rise to 4% this year from 3.3% in 2025, warning that higher energy and fertilizer costs will keep feeding into food and household gas bills even if disruptions ease soon.