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2026-05-26 11:21:46
[Saxo Strategist: Reopening of Strait of Hormuz Could Reduce Extreme Risks; Peace Test Lies in Actual Navigation] 1. Charu Chanana, Chief Investment Strategist at Saxo Securities Singapore, points out that the market does have reason to be optimistic about the outlook, as even a simple reopening of the Strait of Hormuz could significantly alleviate extreme tail risks surrounding oil supply, inflationary pressures, and global economic growth. 2. She also emphasizes that positive news from negotiations should not be confused with a lasting de-escalation. The real test lies not in reaching an agreement that merely makes headlines, but in whether tankers can truly gain free passage, whether shipping insurance rates can fall, and whether energy flows can return to normal. 3. Chanana believes that until then, market trading is likely to continue to exhibit an intermittent risk profile.
