Posted 1/8/2024, 7:02:31 AM
Houthi Blockades Snarl Global Trade, Threaten Economic Fallout
- Red Sea blockades by Houthis causing 12-15% drop in global trade through area
- Container & oil ships hit hard; oil price yet to respond suggesting speculator control
- Inflationary effects evident - higher shipping times & costs from alternate routes
- Likely similar impact as 2021 supply chain issues, further damaging economies
- Political implications like pressuring central banks on interest rates and undermining incumbent governments