Key facts
- Trade blockages in the Persian Gulf have caused global economic disruption.
- The conflict in the Middle East has driven up energy prices and interest rates.
- Iran disrupted traffic in the Strait of Hormuz, a key energy chokepoint.
- Houthi militia in Yemen seized control of the Bab al-Mandab Strait.
- Droughts have impacted freight transport on European rivers like the Rhine and Danube.
Global trade routes are facing significant disruptions due to conflict and climate change, underscoring the persistent power of geography in an era previously thought to transcend distance. Blockages in vital shipping and energy routes, such as the Persian Gulf and the Bab al-Mandab Strait, have caused widespread economic havoc, impacting energy prices, factory output, and agricultural harvests.
The conflict in the Middle East, which began seven months ago following US-Israeli attacks on Iran, has been a primary driver of these disruptions. Iran's actions in the Strait of Hormuz, the world's most important energy chokepoint, and the Houthi militia's control over the Bab al-Mandab Strait at the southern entrance to the Red Sea, have directly threatened global commerce. Even as oil flow has resumed through the Persian Gulf, it has largely been facilitated by the US Navy.