The war on Iran strikes the arteries of trade and energy.. Oil and trade face a hefty bill

An economic analysis of the impact of the US-Israeli war on Iran on navigation in the Strait of Hormuz and the Bab el-Mandeb Strait, and its repercussions on oil markets, supply chains, shipping and insurance costs, and commodity prices, according to expert Dr. Thabet Abu al-Rous.

An economic analysis by expert Dr. Thabet Abu al-Rous on the repercussions of the US-Israeli war on Iran on global trade and energy movement. The analysis focuses on the Strait of Hormuz and the Bab el-Mandeb Strait, where about 20% of the world's oil needs pass through Hormuz, and China's dependence on oil crossing the strait reaches 86%. Abu al-Rous points out that closing Hormuz or disrupting navigation there raises energy costs and transfers to production and service sectors, and raises commodity prices. He also notes that the duration of sea voyages may double from weeks to more than two months when using alternative routes. Regarding Bab el-Mandeb, he explains that its closure could extend the arrival time of shipments from 21 days to three months. Among the most prominent repercussions is the rise in marine insurance costs by at least 300%, and some insurance companies refraining from covering ships heading to the region. He indicates that major transport companies sometimes refuse to ship to the Middle East, threatening a scarcity of essential goods. The expert expects the repercussions to appear on the Arab citizen in the form of a significant rise in commodity prices, especially those related to oil, and a possible shortage of some goods. He warns that the continuation of the crisis could cast a shadow over the economy for years through inflation and recession.