Iran’s parliament speaker, Mohammad Bagher Ghalibaf, posted a maths formula on X on Wednesday. It was a version of the Taylor equation, a formula central banks use to work out interest rates. In the post he asked whether a rate hike could “open SOH” or produce a single barrel. SOH means the Strait of Hormuz, the waterway Iran has largely blocked. He added: “You can’t 25bp a chokepoint,” mixing a joke about rate rises with a wartime warning.
The Taylor equation links interest rates to inflation and growth. The US Federal Reserve and other central banks use it as a guide when they decide rates. Ghalibaf has been one of Iran’s lead negotiators in talks with Washington over the past six months. The Strait of Hormuz carries about a fifth of the world’s oil, so blocking it can push energy prices up fast.
Oil prices set what people pay for petrol, heating and food. A blocked strait can raise costs in countries far from the war.

Iran’s parliament speaker, Mohammad Bagher Ghalibaf, posted a maths formula on X on Wednesday. It was a version of the Taylor equation, a formula central banks use to work out interest rates. In the post he asked whether a rate hike could “open SOH” or produce a single barrel. SOH means the Strait of Hormuz, the waterway Iran has largely blocked. He added: “You can’t 25bp a chokepoint,” mixing a joke about rate rises with a wartime warning.

The Taylor equation links interest rates to inflation and growth. The US Federal Reserve and other central banks use it as a guide when they decide rates. Ghalibaf has been one of Iran’s lead negotiators in talks with Washington over the past six months. The Strait of Hormuz carries about a fifth of the world’s oil, so blocking it can push energy prices up fast.

Oil prices set what people pay for petrol, heating and food. A blocked strait can raise costs in countries far from the war.

📰 Source: News Source
aljazeera.com ↗
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