Even if the Straits of Hormuz reopen, energy market officials and analysts estimate that the industry will no longer be able to rely on them as in the past. For the Straits, there is no return to normality. Countries throughout the region are considering the construction, expansion or restoration of infrastructure that will bypass [...]
Deutsche Bank foresees a broad weakening of the dollar, with George Saravelos, head of the global exchange strategy, assessing that deescalating the risks surrounding the war in Iran opens the way for a new retreat cycle of the American currency. The bank proposes selling the dollar index, predicting a possible rise in the euro/dollar rate above 1.20. The main factors are the reduction in return in the US, the slowdown of capital flows and the possible strengthening of «petroyuan»With China expanding its role in the Middle East.
Kyriakos Mitsotakis warned the House about the serious economic consequences of conflicts in the Middle East, describing the prospects «extremely ominous to tragic». Inflation was launched at 3.9% in March, with food at 4.5% and fuel up to 27.4%. The State Budget Office and the IMF revised growth to 1.8%-2%, while inflation is expected to reach 3.5%. With Brent oil at $90-100 a barrel, the initial budget forecasts are overturned, calling into question the government «success story».
The price of American oil again exceeded $100 a barrel on Sunday to Monday night, in the first transactions after opening markets. The rise followed the announcement of the US armed forces to block Iranian ports, due to the absence of an agreement to end the war in the Middle East. West Texas Intermediate (WTI) for delivery in May rose 7%, while Brent North Sea for delivery in June reached 101.80 dollars with an increase of 6.8%.
