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ING Economist Warns Fuel Prices Will Stay Elevated Despite Iran Ceasefire

He cites limits on the Strait of Hormuz as the main reason prices will not snap back.

Overview

  • Pump prices have eased only a little after the ceasefire, which Carsten Brzeski says reflects a pullback from extreme early‑week spikes rather than lasting relief.
  • The Strait of Hormuz, a narrow passage for Persian Gulf oil shipments, remains restricted and keeps supply risk high.
  • In his baseline, a renewed escalation comes before a gradual reopening of Hormuz over four to six weeks.
  • He sees full normalization only in the fourth quarter and expects Brent crude to finish the year just under $90 a barrel.
  • He projects German growth of about 0.6–0.7% under the baseline, while a worst case could push inflation to 6–8% and tip the economy into a mild recession.