Surging tensions across the Middle East strangled shipping traffic, driving energy prices higher and raising the specter of accelerating inflation worldwide.
A 10th day of aerial attacks between the US and Iran meant just 53 ships crossed the Strait of Hormuz in the week to July 20, a 66% drop on the prior seven days, while threats of Houthi attacks in the Red Sea are limiting Saudi Arabia’s ability to reroute exports.
US average gasoline prices are above $4 a gallon for the first time since June 17, Goldman Sachs predicted European gas prices would remain high into 2027/28, while a leading economics commentator warned that data showing US inflation was slowing was likely “a fluke.”