Difference between "difficult to believe that the situation {would/will} return ...

While reading a newspaper, I found this sentence

1. Even if an argument is put forward that many of today's excesses do not reflect long term reality, It is difficult to believe that the situation would return to the previous normal. (source)

I learnt that would is used in hypothetical sentences. What is the hypothetical situation here?? What happens if we use will instead of would here??

For example:

2. Even if an argument is put forward that many of today's excesses do not reflect long term reality, It is difficult to believe that the situation will return to the previous normal.

So what is the difference between these two sentences???

It is difficult to believe that the situation would return to the previous normal.

It may be that the rules for Indian English are different, but I (UK English) can't think of any justification for using is in the main clause and would in the that-clause.

If you were to say that it is talking about a hypothetical situation predicated on the first part of the sentence, you would have to use would be instead of is. The complete sentence would be:

Even if an argument were put forward that many of today's excesses do not reflect long term reality, It would be difficult to believe that the situation will return to the previous normal.