Iranian Parliament Speaker Mohammad Bagher Ghalibaf has used an economic equation to mock the United States over its decision to raise interest rates amid the ongoing conflict between Tehran and Washington.
Ghalibaf posted a modified version of the Taylor rule on X, linking US interest rates to the Strait of Hormuz, a major global oil-shipping route that has been severely disrupted during the conflict.
“Let’s see if a hike could open SOH or produce a single barrel,” Ghalibaf wrote, referring to the Strait of Hormuz. He added that a 25-basis-point interest rate increase could not resolve the problems surrounding the strategic waterway.
The post came just hours before the US Federal Reserve raised its benchmark interest rate by 25 basis points.
The Taylor rule, developed by economist John Taylor in the early 1990s, is used as a benchmark for assessing where interest rates might be set based on inflation and economic output. However, it is not a strict formula that central banks are required to follow.
Analysts cited by Al Jazeera said the war between the US, Israel and Iran has contributed to higher energy prices and inflationary pressures, potentially influencing the Federal Reserve's decision.
However, they stressed that Iran does not determine US interest rates. The Federal Reserve considers a broad range of economic indicators, including inflation, employment, consumer demand and investment.
Ghalibaf’s message appears aimed at highlighting Iran’s ability to affect global energy markets through disruptions around the Strait of Hormuz and other key waterways.
Analyst Negar Mortazavi said Ghalibaf was essentially using the language of US monetary policy to argue that an interest-rate increase cannot reopen the Strait of Hormuz or restore disrupted oil supplies.
His post, therefore, was more of a political and economic message about Iran’s leverage than a serious proposal for determining US interest rates.
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