IMF reports energy price decline following US-Iran agreement on Strait of Hormuz

The International Monetary Fund (IMF) has observed a decline in energy and commodity prices following an agreement between the United States and Iran to cease hostilities and reopen the Strait of Hormuz. IMF spokesperson Julie Kozack stated that while prices are easing, a full return to normal market levels and trade flows in the Persian Gulf will take time. The IMF is scheduled to present an update to its World Economic Outlook on July 8, where it will evaluate its three existing growth scenarios linked to the conflict. In May, when the Strait was closed and oil prices exceeded $100 per barrel, the IMF had signaled a shift toward an adverse scenario of 2.5% global growth for 2025. Meanwhile, the European Commission's Oil Coordination Group reported that EU oil supply security remains resilient. Coordinated efforts by the International Energy Agency have helped secure additional supply sources for the European Union. Despite previous tensions, current data indicates that trade flows are gradually normalizing.