Chanticleer
Red Sea oil spike is exactly what markets and central banks don’t need
Falling oil prices have made the fight against inflation much easier for central banks, which in turn has boosted markets. The Red Sea attacks threaten to change that.
There’s something very telling that the US-led maritime task force protecting commercial ships travelling through the Red Sea from missile attacks by Houthi militants is called Operation Prosperity Guardian.
The Red Sea turmoil is exactly the sort of expansion of the Middle East conflict that markets have feared, where a contained battle spills into the global economy. The near 4 per cent surge in the price of oil on Monday night after BP said it would suspend Red Sea sailings is an early sign of the disruption that could be coming.
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