A Permanent US-Iran Ceasefire May Not Bring Oil Prices Down

The effects of the US-Iran conflict are felt around the world. Businesses are absorbing higher input costs while consumers face a higher cost of living. But even if a permanent peace agreement is secured, we may be looking at a higher-for-longer oil price situation. Cedric Chehab, Chief Economist at BMI, a Fitch Solutions company, breaks down the macroeconomics of the current oil shock, from geopolitical risk premiums and sticky inflation to a subsidy regime in Malaysia that is fast becoming unsustainable.Tune in to find out: Five Reasons Oil Prices Won't Drop Overnight: Why a ceasefire announcement does not equal cheaper fuel the next morning.  The Sticky Inflation Problem: Even when oil prices fall, businesses and households should not assume an equivalent drop in what they pay day to day. The Future of OPEC+: UAE's recent departure from the alliance raises serious questions about OPEC+'s ability to coordinate global oil supply.  Signs of Demand Destruction: Specific indicators businesses should be tracking right now as early warning signals of a broader economic slowdown. Practical Steps To Take: This is the fourth major energy supply shock in six years. What businesses must do now to build resilience before the next disruption hits.Image credit: ShutterstockSee omnystudio.com/listener for privacy information.