War and peace: portfolio ramifications

APRIL marks the first anniversary of “Liberation Day”, when US President Donald Trump threatened to levy punitive tariffs on countries around the world.

However, the oil price shock since the start of the Middle East conflict has exacted more pain in terms of inflation, economic activity and capital flows than the year-long tariff war.

The closure of the Strait of Hormuz has tightened the noose around global oil supplies and trade routes. With Trump’s announcement of a naval blockade following failed negotiations between the United States and Iran last weekend, the economic impact of this critical chokepoint for global energy and trade will persist.