China’s Return to the Oil Market Could Boost Inflation

AI Summary

The U.S. and Iran have reached an agreement to reopen the Strait of Hormuz, potentially enabling China to increase crude oil purchases. This development could increase inflationary pressures despite an expected easing of oil flows from the Middle East.

The U.S.-Iran agreement to reopen the Strait of Hormuz could prompt China to return to buying more crude after months of multi-year-low purchases, which could reignite inflationary pressures despite the expected ease of oil flows from the Middle East.    Late on Sunday, the U.S. and Iran announced a deal to reopen the Strait of Hormuz more than 100 days after its closure. This re-opening could happen as soon as an agreement is signed on Friday. News of the deal sent oil prices tumbling early on Monday, with Brent Crude prices down to…