Key maritime chokepoints
According to Dr. Nakhle, this is not the first time shipping through the Red Sea gets distorted, nor is the Red Sea the only maritime chokepoint for global trade. The good news for global trade is that there are alternatives, albeit at higher costs and longer voyage. No one knows how the current situation will unfold but one remains hopeful that many players are directly affected and they have a strong interest in resolving the problem sooner rather than later.
Even in the event where the Red Sea remains a no go route for years, the impact on oil and gas prices will be limited as long as supplies are not affected.
“Overview of Oil markets and the path ahead for OPEC+“, Dr Carole Nakhle, Dec 2023
“Tensions in the Red Sea slightly affected the rise in oil prices“, Dr Carole Nakhle, Dec 2023