BlockBeats News, June 15th, Ben May and Bridget Payne from the Oxford Institute of Economic Research stated in a report that despite possible future setbacks, the US-Iran agreement has reduced the continued decline in oil inventories, ultimately leading to a surge in global energy prices and the risk of an economic recession.

However, they noted that this does not automatically mean that the volume of oil flowing through the Strait of Hormuz will increase faster than previously expected. "We originally assumed that shipping through the Strait of Hormuz would resume by the end of July. Nevertheless, our current short-term oil price forecast still appears to be on the high side."

They added that the reopening of the Strait of Hormuz is likely to help reduce inflation but has limited potential to boost economic growth. Therefore, this development further strengthens their view that the Federal Reserve and the Bank of England will not raise interest rates, and other central banks that have already raised rates will not do so again. (FXStreet)