Strait of Hormuz Tied to US Inflation Expectations, Iran's Parliament Speaker Claims

Gholamali Haddad-Adel, the Speaker of Iran's Parliament, has made a bold claim that US inflation expectations are tied to the Strait of Hormuz.

In a post on X, he questioned whether the US Federal Reserve could address rising oil prices by raising interest rates alone. He argued that changes in borrowing costs would not alleviate the supply-side shock caused by disruptions at strategic energy chokepoints, particularly the Strait of Hormuz and the Bab el-Mandeb.

Gholamali Haddad-Adel claimed that inflation expectations in the US are being influenced more by geopolitical factors than interest rates. He said control over this risk is currently in Iran's hands, adding that relying solely on demand-side tools like interest rates was no longer sufficient under current conditions.