Reopening of Strait of Hormuz to lower tail risk, but supply normalisation to be costly: S&P
- Posted on June 25, 2026
- By Business News Today
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- 1 min read
Reopening of Strait of Hormuz to lower tail risk, but supply normalisation to be costly: S&P
S&P Global Ratings suggests reopening the Strait of Hormuz eases immediate risks for Asia Pacific, but expects uneven and costly supply normalisation. While a US-Iran MoU is constructive, unresolved issues persist. Delays in pre-conflict flows could keep energy and input costs elevated, impacting sectors like petrochemicals and agriculture, with South Asia particularly vulnerable to fertilizer shortages and price hikes.
