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Gulf oil flows have already rebounded to levels above those seen before the war, according to James E. Thorne. He notes that what is still reflected in prices are tanker rates, which remain elevated at 5 to 10 times their previous levels, along with a geopolitical premium. Thorne adds that these risk premia could quickly disappear and comments that the more the Federal Reserve tightens monetary policy now, the more it may cut in 2027.
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Thorne previously noted that Bond Vigilantes are closely watching underlying Consumer Price Index data, as reported in an earlier article. He has also projected that the S&P 500 could reach 10,000 by 2027, encouraging investors to consider buying on market dips according to a prior forecast. These recent assessments further outline his outlook on market risks and opportunities.