China’s Return to the Oil Market Could Boost Inflation

The U.S.-Iran agreement to reopen the Strait of Hormuz could prompt China to return to buying more crude after months of multi-year-low purchases, which could reignite inflationary pressures despite the expected ease of oil flows from the Middle East.

Late on Sunday, the U.S. and Iran announced a deal to reopen the Strait of Hormuz more than 100 days after its closure.

This re-opening could happen as soon as an agreement is signed on Friday.

News of the deal sent oil prices tumbling early on Monday, with Brent Crude prices down to…