IMF says strait of Hormuz closure raises prospect of ‘major energy crisis’

The International Monetary Fund is forecasting a range of possible global economic scenarios due to the ongoing conflict in the Middle East. IMF’s chief economist, Pierre-Olivier Gourinchas, says: ‘Our adverse scenario assumes further disruption, leading to higher energy prices and inflation expectations, and tighter financial conditions throughout the year … Our severe scenario assumes that energy supply disruptions extend into next year with greater macro instability’