Geopolitical Tensions and Potential Tariff Escalation Impact Global Economy

According to BlockBeats, analysts from Bloomberg Economics, including Ziad Daoud, have highlighted rising geopolitical risks as U.S. President Donald Trump's suspension of reciprocal tariffs is set to expire. This situation could lead to an escalation in tariffs in the coming weeks. The prolonged conflict in the Middle East poses a significant threat to the economy, primarily through potential surges in oil prices. In an extreme scenario where the Strait of Hormuz is closed, crude oil prices could exceed $130 per barrel. Such an increase might push the U.S. Consumer Price Index (CPI) close to 4% during the summer, prompting the Federal Reserve and other central banks to delay future interest rate cuts. The report indicates that any substantial rise in oil or gas prices, or trade disruptions caused by further conflict escalation, would present additional challenges to the global economy.