world-economy

Oil Rally Fades as Hormuz Reopening Fails to Resolve Freight Disruptions

Financial markets surged Monday on expectations of an Iran deal. However, logistics networks remain strained after hopes for Strait of Hormuz reopening collapsed following fresh airstrikes. Crude futures retreated on deal prospects, but air freight rates have proven stubbornly resistant to decline. Global freighter capacity rose 4% month-on-month, yet rates remained high. Gulf importers facing prolonged closure of the critical chokepoint are pivoting to overland corridors and TIR system routes. These alternatives are taxing already-stressed landbridge infrastructure. Economists warn that persistent inflation concerns may limit Federal Reserve flexibility on interest rates. Industry participants cautiously acknowledged geopolitical easing but warned against premature celebration, noting that the conflict's economic impact extends beyond commodity prices into capacity allocation and routing complexity.