Indicators
Dallas Fed Sees Hit to Global GDP if Strait of Hormuz Stays Shut
Cargo ships and tankers are seen in the Strait of Hormuz on February 25.
Photographer: Giuseppe Cacace/AFP/Getty Images
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.