Flashback Friday | #414: The Red Sea Shooting Gallery

Estimates are that $200B of goods have already been diverted away from the region surrounding Yemen in the Gulf of Aden and the Red Sea. The disruptions in travel through the Suez Canal have cascading effects that are felt worldwide, as it puts additional pressure on the supply chain.

There is fear of an event drawing Iran into some kind of conflict in the region, which would see the Straight of Hormuz come under the watchful eye of the Iranian government, further adding to shipping issues impacting the oil and LNG exports coming out of that geographic region.

It is also worth noting that the expansion of BRICS into this region works to solidify China’s connections through the Belt & Road Initiative, while also locking down and securing the shipping lanes to make sure that the oil can continue to leave the region through the Persian Gulf and the Red Sea.

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