(UnHerd) Philip Pilkington - Houthi attacks on commercial shipping in the Red Sea have now reached a critical point, with many global shipping companies stopping their vessels from moving through the area. The Bab al-Mandab chokepoint in the Red Sea accounts for 10% of global seaborne oil flows and also a large amount of liquefied natural gas. The alternative route involves sailing around the African continent. The main economic risk that this introduces is to delay the arrival of key goods which would lead to shortages and inflation. Oil markets also seem likely to be affected. The failure of the U.S. to intervene will result not just in economic pressures, but also in other countries calling into question the viability of American security guarantees. The writer is an Irish economist working in investment finance.
2023-12-19 00:00:00Full ArticleBACK Visit the Daily Alert Archive