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IMF Anticipates Gradual Market Stabilization After Strait Reopening

Global energy and commodity markets are recalibrating as the Strait of Hormuz reopens following the U.S.-Iran ceasefire. While the immediate price spike has retreated, the International Monetary Fund warns that a return to full economic normalcy remains a protracted process rather than an overnight shift.

IMF Anticipates Gradual Market Stabilization After Strait Reopening

IMF spokesperson Julie Kozack noted on Thursday that while current conditions show improvement, the organization is currently reassessing its economic projections. A comprehensive update to the World Economic Outlook, scheduled for July 8, will revisit growth scenarios that were originally modeled under the shadow of the regional conflict.

Previous forecasts painted a bleak picture, with the extended closure of the Strait threatening to drag global growth down to 2.5% by 2026. However, aggressive interest rate hikes by central banks have successfully kept inflation expectations anchored despite the instability. Brent crude is now trading at roughly $73 a barrel, a relief for net energy-importing nations across Africa that faced severe fiscal strain during the height of the crisis.

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