Hormuz blockade hits economy

The closure of the Strait of Hormuz has intensified a global energy shock, pushing Brent crude prices above $105 per barrel.

Consumer goods giant Procter & Gamble has warned of a $1 billion hit to its profits, while packaging firm Mondi is implementing price hikes to offset surging fuel costs.

The blockade has also forced shipping companies to pay up to $4 million for slots to transit the Panama Canal as they seek alternative routes.

Economists warn that the resulting inflationary pressure could persist through 2026, even if the waterway were to reopen immediately.