Analyst: The Middle East conflict may push the US summer CPI to 4%

BlockBeats news, on June 23, analysts from Bloomberg, including Ziad Daoud, stated in a report that as the U.S. President Trump’s suspension of the so-called reciprocal tariffs approaches expiration, the rising geopolitical risks intertwine with the potential escalation of tariffs in the coming weeks. The prolonged conflict in the Middle East may have the largest impact on the economy, which could be a surge in oil prices. In extreme cases of the closure of the Strait of Hormuz, crude oil could soar above $130 per barrel. This could bring the U.S. CPI close to 4% this summer, prompting the Federal Reserve and other Central Banks to delay future interest rate cuts. The report states that any significant increase in oil or natural gas prices, or trade turbulence caused by further escalation of conflicts, will become another constraint on the global economy. (Jin10)