TechFlow news, June 23 — According to Jinshi Data, Bloomberg Economics analysts including Ziad Daoud said in a report that geopolitical risks are rising as U.S. President Trump's suspension of so-called reciprocal tariffs nears expiration, coinciding with the possibility of tariff escalations in the coming weeks. The longest-running impact of Middle East conflicts on the economy could be a surge in oil prices. In an extreme scenario where the Strait of Hormuz is closed, crude oil prices might soar above $130 per barrel. This could push U.S. summer CPI close to 4%, prompting the Federal Reserve and other central banks to delay future rate cuts.
The report stated that any sharp rise in oil or natural gas prices, or trade disruptions caused by further escalation of conflict, would become another drag on the global economy.
