Goolsbee Warns Iran War Keeps Brent Near $96, Delivering Stagflationary Shock to Asia
Updated
Updated · CNBC · May 28
Goolsbee Warns Iran War Keeps Brent Near $96, Delivering Stagflationary Shock to Asia
1 articles · Updated · CNBC · May 28
Energy inflation from the Iran war has lasted longer than expected, Chicago Fed President Austan Goolsbee said, arguing the shock now looks stagflationary for Asian economies.
Brent rose 1.81% to $96 a barrel and WTI gained 1.71% to $90.21, still far above the $72 Brent and $67.02 WTI levels seen before U.S. and Israeli strikes on Iran.
Futures markets had initially implied much lower energy prices by now, Goolsbee said, even though oil has recently eased on signs of progress in U.S.-Iran peace talks.
Asian economies face the sharpest hit because they are major energy importers, turning the conflict into what Goolsbee called an old-fashioned stagflationary shock.
With peace talks stalled and oil markets in chaos, what is the ultimate price for reopening the Strait of Hormuz?
The Hormuz crisis exposed global fragility. Which critical chokepoint could spark the next worldwide economic shock?
As the Iran war fuels a global green energy boom, which nations will emerge as the new economic powerhouses?