Economist: The US-Iran agreement reduces recession risk but does not change outlook expectations

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Mars Finance News, June 15 — Ben May and Bridget Payne from the Oxford Economics Research Institute stated in a report that although there may still be setbacks in the future, the US-Iran agreement has reduced the risk of continued declines in oil inventories, ultimately triggering a surge in global energy prices and leading to an economic recession. However, they noted that this does not automatically mean that the volume of oil passing through the Strait of Hormuz will increase faster than previously expected. "We originally assumed that shipping through the Strait of Hormuz would resume by the end of July. Nevertheless, our current short-term oil price forecast still appears to be somewhat high," they added. They further explained that the reopening of the Strait of Hormuz is likely to help reduce inflation, but its impact on economic growth is limited. This news further reinforces their view that the Federal Reserve and the Bank of England will not raise interest rates, and other central banks that have already raised rates will not do so again. (Jin10)
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