Hormuz Disruptions Persist Despite Imminent Deal Hopes
The disruption to shipping through the Strait of Hormuz continues to impact global supply chains, despite reports of an imminent deal between Iran and Oman.
Brent crude futures traded near $85 a barrel as markets priced in the possibility of a deal, but experts warn that normalization could take months even if shipping traffic resumes.
According to UBS senior international economist Pierre Lafourcade, global supply-chain stress remains near its highest level since the pandemic, with pressures easing modestly in July from their June peak.
The bank's proprietary Global Supply Chain Stress Index showed that although pressures eased .4 standard deviation from June, disruptions stemming from the Hormuz chokepoint continue to strain global shipping networks.