IMF Says Energy Prices Declining After U.S.-Iran Deal, Full Recovery Takes Time

According to IMF spokeswoman Julie Kozack at a news briefing, energy and commodity prices have declined since the U.S. and Iran agreed to cease hostilities and reopen the Strait of Hormuz, but full price recovery and normalized Gulf trade flows will require more time.

On July 8, the IMF will decide whether to adjust the three economic growth scenarios it outlined in April, which were contingent on developments in the Iran conflict. Kozack also noted that inflation expectations have been effectively anchored as some central banks raised rates, while financial conditions remain loose across developed and emerging markets.