Key facts
- Conflicts in the Middle East have driven up energy prices and disrupted global trade.
- The Strait of Hormuz and the Bab al-Mandab Strait are key transit points for global commerce.
- Drought in Europe and low water levels in the Panama Canal have impacted shipping and industrial production.
- Warming waters have enabled new commercial shipping routes in the Arctic Ocean.
- The postwar global order, which emphasized cooperation, is eroding, leading to increased confrontation.
Decades of assuming that technology and globalization have transcended geographical limitations are being challenged by recent global events. Conflicts in the Middle East, particularly disruptions in the Persian Gulf and the Red Sea, have led to increased energy prices, factory production issues, and jeopardized harvests. These events highlight the enduring power of key maritime chokepoints like the Strait of Hormuz and the Bab al-Mandab Strait.