Analysts warn: Middle East conflict may push US summer CPI to 4%, The Federal Reserve (FED) may delay interest rate cuts.

TokenomicsTrapper · 2025-06-23T00:00:29+00:00

Analysts point out that the conflict in the Middle East could lead to a rise in the U.S. summer CPI to 4%, mainly due to the increased risk of pump in oil prices, especially in the event of the closure of the Strait of Hormuz. This situation could impact the Federal Reserve's interest rate cut plans, becoming yet another obstacle for the global economy.

TokenomicsTrapper

2025-06-23 00:00:29

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[Coin World][Analyst: Middle East Conflict May Push U.S. Summer CPI to 4%] Analysts at Bloomberg, including Ziad Daoud, stated in a report that as President Trump’s suspension of the so-called reciprocal tariffs nears its expiration, the rising geopolitical risks intertwine with the possibility of tariff escalations in the coming weeks. The prolonged Middle East conflict may have the most significant impact on the economy by causing oil prices to surge. In extreme scenarios where the Strait of Hormuz is closed, crude oil could soar above $130 per barrel. This could push the U.S. summer CPI close to 4%, prompting The Federal Reserve and other Central Banks to delay future rate cuts. The report noted that any significant increase in oil or natural gas prices, or trade turmoil caused by further escalation of the conflict, would pose another constraint on the global economy.

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