Global Economy Picked Up Before Fresh Energy Hit

Business activity in the U.S., Europe and parts of Asia picked up in July, an indication that the global economy was growing at a moderate pace before the fresh surge in energy prices triggered by the resumption of hostilities between the U.S. and Iran takes a toll.

In June, the U.S. and Iran signed a memorandum of understanding to reopen the Strait of Hormuz, leading to a big fall in energy prices toward prewar levels. However, the resumption of military action earlier this month has pushed energy costs sharply higher.