BIS Warns Hormuz Strait Closure May Pose Lasting Threat to Global Economy

According to the Bank for International Settlements (BIS) report released on June 28, the closure of the Strait of Hormuz has triggered an energy and commodity supply crisis, posing an ongoing threat to global economic prospects. Despite recent easing of geopolitical tensions and a sharp decline in oil prices, the shock's impact is likely to persist. The BIS said that while current geopolitical risks have moderated, supply bottlenecks could continue to constrain production and weigh on capital spending momentum globally.
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