Jun. 13 at 8:29 PM
$GLND
Prices will remain high long after the conflict in Iran ends, Bloomberg reports, citing European Central Bank (ECB) spokesman Joachim Nagel.
He believes that prices will be affected by the toll Iran may charge for ships to pass through, as well as the fact that supply chains have already changed, and passage through the Strait of Hormuz will still be fraught with some concerns.
According to Nagel, the recent ECB interest rate hike is also linked to the price increase due to the strait closure. Nagel believes another rate hike is possible in July.
"I almost suspect we will never return to the situation we had before this regional conflict. The world may continue to be shaped by uncertainties and changes beyond this conflict," Nagel stated.
