Malik warns oil shock could spike inflation

Nipun Capital CIO Pooja Malik cautioned that a blockade of the Strait of Hormuz and oil prices reaching $100 per barrel could inflate U.S. inflation by 0.9%. This scenario would disproportionately affect emerging markets, with equities bearing the brunt of a one-to-two-month disruption. Malik suggests strategic investments in China, AI supply chains, and Saudi upstream oil as potential havens. While acknowledging a short-term pivot to fossil fuels might be necessary during such a crisis, she emphasized that the long-term structural demand for clean energy will persist.