NewsNovo
China's producer price index climbed for a fourth straight month, a streak that would read as a clean domestic recovery if the Strait of Hormuz were open.
A ceasefire involving Iran remains unresolved, tanker traffic through the strait is disrupted, and the resulting supply chain pressure complicates any straightforward reading of what is driving Chinese factory costs higher.
The physical reality The Strait of Hormuz is the passage through which a large share of the region's oil and gas moves by sea.
When it closes, energy costs rise for buyers downstream, including Chinese manufacturers who depend on imported feedstocks and fuel. The cost pushes through at the factory gate.
Keep reading