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geopolitical uncertainty, elevated energy prices and interest rates that remain restrictive.
If the disruption persists, the inflation implications could become much more important than the initial oil price reaction.
The duration of the supply disruption will matter far more than a single spike in Brent.
#HormuzReopeningPlan
Any prolonged disruption could tighten global supply and push energy prices significantly higher.
For markets, the consequences extend beyond oil producers.
Higher crude prices can feed into transportation, manufacturing and consumer costs, complicating the inflation outlook just as investors are trying to understand the Federal Reserve's next move.
There's also a difficult combination emerging for risk assets:
#HormuzReopeningPlan
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