Iranian Parliament Speaker Mohammad Bagher Ghalibaf has taken a swipe at the US Federal Reserve’s 25-basis-point rate hike, using a satirical version of the Taylor Rule to mock the central bank’s policy decision.
In a post on X, Ghalibaf introduced what he called the “Straits Taylor Rule”, adding variables linked to the Strait of Hormuz and what appeared to be a reference to oil barrels.
Straits Taylor Rule:
i = r* + π* + 1.5(π−π*) + 0.5(y−y*) + α(SOH−SOH*) + β(BEM−BEM*), α,β > 0
Let’s see if a hike could open SOH or produce a single barrel 🙂
You can’t 25bp a chokepoint and r* isn’t neutral. It’s SOH risk premium, and We set it.
Stay unanchored !
— محمدباقر قالیباف | MB Ghalibaf (@mb_ghalibaf) September 16, 2026
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Ghalibaf argued that a 25-basis-point rate hike could not address the risks surrounding a strategic chokepoint such as the Strait of Hormuz. He also suggested that the risk premium associated with the strait was not neutral and that Iran had control over it.
“Let’s see if a hike could open SOH or produce a single barrel,” Ghalibaf wrote, referring to the Strait of Hormuz.