Geopolitical Tensions Driving Up Prices and Forcing Countries to Pick Sides
• Inflation likely to stay around 3% due to geopolitical fragmentation such as US-China tensions and Middle East conflicts • Shipping costs rising due to rerouting of tankers to avoid Red Sea attacks • BlackRock geopolitical risk indicator approaching levels last seen before Russia-Ukraine war • World increasingly splitting into competing blocs, reversing past globalization • Countries like Mexico and Vietnam benefitting from role as trading partners between blocs