Strait of Hormuz Oil Shock Pins Fed as IMF Warns of 1970s-Scale Crisis
A U.S.-Iran military conflict disrupting the Strait of Hormuz has sent oil prices surging and pushed monthly inflation up 0.9%, trapping the Federal Reserve between rising prices and a softening labor market. IMF Chief Economist Pierre-Olivier Gourinchas warned the shock could rival the 1970s oil crisis. Equity markets are whipsawing as traders price the unresolved conflict into every asset class.
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