Middle East Conflict and Hormuz Blockade Trigger Multi-Year Global Repricing

The protracted Middle East conflict and effective blockade of the Strait of Hormuz have unleashed a historic energy supply shock, reversing central bank easing expectations and embedding inflation globally. This systemic shift is forcing a multi-year re-pricing of interest rates, geopolitical risk, and global growth trajectories, with emerging markets facing the steepest per capita income decline since the pandemic.