A halt in Strait of Hormuz oil shipments that persists through June due to the Iran war would reduce global economic growth by an annualized 2.9 percentage points in the second quarter, according to the Federal Reserve Bank of Dallas.
About one-fifth of the world’s oil passes through the Strait of Hormuz, which has been essentially closed as a result of the war. That’s caused the price of West Texas Intermediate oil to surpass $97 a barrel.
The regional Fed bank’s researchers modeled the potential economic impact if the maritime chokepoint is shut to shipping traffic for various durations. If ...
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