The Strait of Hormuz must be opened in days, not weeks, to avoid global recession risks – BofA head of research

The warning from Bank of America's head of research highlights the risk of a global recession if the Strait of Hormuz, a critical oil transit route, remains closed, potentially leading to sharp increases in oil prices and widespread economic disruptions. This could exacerbate existing inflationary pressures and supply chain issues, negatively impacting global markets and energy-dependent sectors. However, markets may have already anticipated such geopolitical tensions, limiting the immediate surprise factor.