Kate Duguid

So I think that the reason why investors are optimistic about this deal is because we've heard from Iran as well as from the United States.

Previously, we had kind of only been hearing from President Trump and the White House, and we had not been hearing from Tehran.

So I think that that's the real reason that investors are taking this seriously.

The reason that they think that energy prices are probably going to fall as the Strait of Hormuz is reopened.

And Iran goes about rebuilding some of the infrastructure that was destroyed.

So I think that what you're hinting at, which is that we might have inflation for longer than just, you know, that these inflationary effects might persist, is absolutely right.

I think that we will continue to see higher energy prices for a little while, given that

As you mentioned, the street itself is not completely open yet, but also because like a lot of critical infrastructure has been damaged and will take time to rebuild.

You know, there are a number of different commodity markets that this is going to affect.

One thing that we saw is U.S.

wholesale inflation rose dramatically in April.

And so that tends to be a predictor of inflation to come in consumer prices.

It hasn't quite shown up in the CPI data yet, which has risen, but it's only been because of energy.

Core prices have not really risen very much.

And the wholesale inflation data kind of suggests that it might still be to come.

I don't think that we should expect a rate hike from either the BOE or the Federal Reserve.

Core inflation has not risen fast enough to justify an immediate hike.

But what I will say is that I do think that the Fed statement will likely remove what's called the easing bias.

And so that is an indication that the Fed is sort of is not looking to cut interest rates anymore, which is what was expected at the beginning of this year.

At the Bank of England, Governor Bailey has signaled no immediate rush to raise rates despite higher inflation.