DBO - Geopolitical Conflict Threatens Yet Another Shipping Choke Point
2024-04-18 15:03:00 ET
Summary
- Global shipping routes are already heavily impacted from the Red Sea to the Gulf of Aden because of ongoing geopolitical strife.
- If the Strait of Hormuz is in any way disrupted, the impact on oil and global trade could be huge.
- On the demand side, ongoing economic headwinds might also offset supply restrictions to some extent, with the Chinese and eurozone economic growth path improving but remaining subdued overall.
By Inga Fechner , Rico Luman , & Warren Patterson
It's a stark fact: more than 80% of global goods trade is transported by sea. And any disruption in maritime trade can have a profound impact on the worldwide economy. The latest potential flashpoint is the Strait of Hormuz. It's a vital artery that carries around a fifth of the world's oil. It's been at the centre of numerous geopolitical tensions for many years. Any disruption could have yet another negative economic impact on the global economy, hampering vital trade routes and lengthening transit times, resulting in production delays and higher inflation....
Geopolitical Conflict Threatens Yet Another Shipping Choke Point