What happens in the Red Sea is having a huge impact on the global economy
The biggest risk to the global economy today is "heightened geopolitical tensions," including the potential for the Israeli-Palestinian conflict to spread across the Middle East and disrupt energy markets, according to data released by an authoritative organization on February 5. One study found that a doubling of transport costs as a result of the Red Sea disruption could add 0.4 percentage points to global inflation a year later, with a larger-than-expected impact on the global economy.
more