Guotai Haitong: Escalation of US-Iran conflict disrupts oil prices; liquidity pressure is expected to ease gradually from mid to late July

Glonhui, July 14 — Guotai Haitong released a research report stating that oil prices have rebounded as tensions in the Middle East escalate once again, and the Federal Reserve's stance has turned more hawkish, though internal disagreements remain significant. If subsequent inflationary pressures ease as expected and the July FOMC meeting does not deliver further hawkish signals, concerns over interest rate hikes are likely to diminish further. It is expected that liquidity pressures will gradually ease from mid to late July, marking a shift from the “Black June” into a “Reversal July”.