Hormuz Closure Triggers Global Inflation Shock and Policy Panic

The closure of the Strait of Hormuz has shattered the global disinflation trend, forcing central banks to abandon rate cuts and pivot toward a 'higher-for-longer' stance. With inflation in developed economies rising to 2.9% by 2026 and emerging markets facing severe cost pressures, the world faces a dangerous dilemma where monetary tightening risks deepening a slowdown without guaranteeing price stability.