Straits from Hormuz to Bab el-Mandeb: Is global trade at risk

The Strait of Hormuz has become one of the most dangerous elements in the global geopolitical struggle, as it controls the passage of about one-fifth of the world's oil and liquefied natural gas trade. This makes any disruption to navigation directly impact energy prices and global markets. Threats between the United States and Iran have increased, with the tools of conflict shifting from military threats to economic measures such as tariffs and maritime insurance. Internal disagreements within Iran over policies and how to manage escalation also persist. Moreover, the conflict is linked to the risk of expansion into the Bab el-Mandeb Strait, which would threaten global trade routes, lead to higher shipping and insurance costs, and raise security and financial concerns that could jeopardize regional and global stability.

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