Some experts argued the Strait of Hormuz closure may not lead to an all-out economic catastrophe, as the prevailing narrative suggests.
The Brookings Institution’s Robin Brooks wrote that global manufacturing data from March shows that the Iran war “isn’t nearly [as] disruptive as some would like it to be,” and that “the apocalyptic talk is way off base,” given the resilience of the global economy. And new European economic readings show growth slowing but prices not yet spiraling out of control, according to HSBC analysts.
Companies, however, appear to be bracing for the ripple effects of the disruptions; at least 21 firms have withdrawn or reduced financial guidance since the war began, and 32 have signaled price hikes, Reuters reported.