#oilshock

map source (Marketwatch): https://images.mktw.net/im-00084239?width=1200&size=1.871345029239766&pixel_ratio=2

### CFOs Report Resilience to Oil Turbulence, but Inflation Anxiety Grows U.S. chief financial officers say the recent spike in crude prices triggered by the Strait of Hormuz disruption has been largely absorbed, yet a sizable share remain wary of an impending inflationary surge. The findings come from a joint survey conducted by the Richmond and Atlanta Federal Reserve Banks together with Duke’s Fuqua School of Business, which canvassed 530 finance executives across the country. #### Key Takeaways - **Oil shock largely contained:** Two‑thirds of respondents indicated their firms have already adjusted to higher energy costs without material impact on operations. - **Inflation remains top concern:** Despite short‑term stability, CFOs cite expectations of renewed price pressures as the primary strategic risk. - **Broad industry representation:** The survey spans manufacturing, services, technology, and retail, offering a cross‑sector view of corporate sentiment. - **Proactive budgeting:** Executives report tightening forecasts and building contingency buffers to guard against future cost escalations. - **Policy implications:** The mixed outlook underscores the challenge for policymakers to balance energy market volatility with broader inflation targets. [Read Full Article](https://news.ababil360.com/u-s-firms-weathered-the-oil-shock-but-future-inflation-looms/) #OilShock #CFOInsights #USInflation #FedSurvey #EnergyMarkets #CorporateFinance #EconomicOutlook #StraitOfHormuz #PriceVolatility #newsababil360

I watched this recently and it explains why the Iran–Israel tensions could affect the entire global economy, not just the Middle East. Very informative.

I watched this recently and didn’t realize how important the Strait of Hormuz is to the global economy. Really eye-opening video.

**How the Iran Conflict is Reshaping Global Markets and Household Finances** The recent escalation of hostilities in Iran has sent shockwaves through the world economy, prompting economist Mariana Mazzucato to join Redi Tlhabi for an in‑depth analysis. Mazzucato warns that the abrupt halt in oil flows has driven Brent crude down roughly 7 % in weeks, tightening global liquidity at a time when emerging economies are already vulnerable. The discussion maps the chain reaction—from dwindling state revenues to higher consumer costs—highlighting who ultimately bears the burden. ### Key Takeaways - **Oil price plunge:** Brent crude fell about 7 % within weeks of the conflict, compressing profit margins for oil‑dependent nations. - **Liquidity squeeze:** Reduced oil revenues are curtailing global liquidity, raising financing costs for both governments and private firms. - **Emerging market exposure:** Countries reliant on oil imports face sharper currency pressures and tighter fiscal spaces. - **Household impact:** Higher energy prices and inflation are expected to erode disposable incomes, disproportionately affecting low‑ and middle‑income families. - **State budget strain:** Declining export earnings will force governments to reassess spending priorities, potentially cutting social programs. - **Policy response needed:** Mazzucato emphasizes coordinated fiscal and monetary measures to cushion the shock and prevent a broader downturn. - **Supply‑chain ripple effects:** Disruptions in oil logistics are spilling over into unrelated sectors, from shipping to manufacturing. - **Investor caution:** Market participants are recalibrating risk models, with increased volatility in commodities and emerging‑market equities. - **Long‑term strategic shift:** The episode may accelerate diversification efforts away from oil‑centric growth models. - **Global interdependence:** The crisis underscores how geopolitical events in a single region can reverberate across the entire financial system. #IranWar #OilShock #GlobalLiquidity #EmergingMarkets #HouseholdBurden #MarianaMazzucato #EconomicPolicy #BrentPriceDrop #StateBudgets #newsababil360 [Read Full Article](https://news.ababil360.com/mazzucato-warns-iran-war-economic-shock-will-hit-households-and-markets/)

@coinccino

The real crisis lies in the escalating tension between Iran and Israel. A miscalculation could trigger an oil shock, freeze global markets, and force major powers to choose sides