The International Monetary Fund (IMF) announced on Thursday that energy and commodity prices have declined since the U.S.-Iran ceasefire and the reopening of the Strait of Hormuz. However, full normalization of trade and prices will take time, stated IMF spokesperson Julie Kozack during a news briefing.
The IMF is set to update its World Economic Outlook on July 8, where it will evaluate its previous growth scenarios outlined in April, predicated on the outcomes of the Iran conflict. Kozack had indicated that with the prolonged closure of the Strait of Hormuz, the global economy was shifting towards a more pessimistic outlook with projected 2.5% global growth for 2026.
Despite the adverse scenario, Kozack reported that inflation expectations have remained anchored, aided by central banks raising interest rates globally. On Thursday, Brent crude was trading around $73 a barrel, signaling a decline in oil prices and easing pressures on net energy-importing developing countries, particularly in Africa.
(With inputs from agencies.)