Report: Iran ceasefire does not change consideration of imminent inflationary impact.

Claus Vistesen of Pantheon Macroeconomics said in a report that although the significant drop in oil prices on Wednesday after a two-week ceasefire agreement was reached, it still signifies a huge inflation shock is on the way. He said, "The agreement eliminates the possibility of rate hikes in April - a prospect we deemed unlikely anyway - but we still maintain our view that the European Central Bank will slightly tighten policy in the summer." Despite the market's welcome of the ceasefire, Iran still has the potential to restrict traffic through the Strait of Hormuz. He added, "Tehran has realized from this crisis that it can exert tremendous pressure on the US by controlling this strait, and we believe the country has no reason not to immediately exploit this."