You guys need to pay attention because what just hit my feed is terrifying. Iran has officially responded to fresh US strikes with a threat to block more trade routes and it could break something massive. The Biden administration launched strikes against Iranian targets in retaliation for missile attacks, and now Tehran's answer is to shut down critical shipping lanes. We're talking about the Red Sea and Bab al-Mandab Strait — one of the most important choke points on Earth. Iran has been harassing commercial ships there already but this escalates it exponentially because they can effectively close off passage for tankers heading through Suez Canal routes. This isn't just political posturing, it will actually stop goods from moving across continents and you cannot even begin to imagine what that does to everyday supply chains.
Let me lay out the numbers because I want you to feel how big this is. Roughly 12% of global trade passes through Suez — meaning about $300 billion worth of commerce a year gets hit first. Then there's oil, which makes up around 6-7% of total volume but carries way more weight in terms of energy stability. Shipping companies already face insurance costs that have jumped by nearly 25% for transits through the Red Sea area and many are now rerouting around Africa. That adds 10 to 14 days per voyage, consumes an extra ~38% fuel per trip, and forces cargo onto slower ships with smaller capacity. We're talking about container prices at ports surging by tens of percentage points in some lanes already and yes — that ultimately comes out of your pocket when shelf prices for everything from electronics to clothes start climbing. This is not a 'somewhere else problem.'
Source: https://www.bbc.co.uk/news/articles/c9323zgq6wvo?at_medium=RSS&at_campaign=rss
Let me lay out the numbers because I want you to feel how big this is. Roughly 12% of global trade passes through Suez — meaning about $300 billion worth of commerce a year gets hit first. Then there's oil, which makes up around 6-7% of total volume but carries way more weight in terms of energy stability. Shipping companies already face insurance costs that have jumped by nearly 25% for transits through the Red Sea area and many are now rerouting around Africa. That adds 10 to 14 days per voyage, consumes an extra ~38% fuel per trip, and forces cargo onto slower ships with smaller capacity. We're talking about container prices at ports surging by tens of percentage points in some lanes already and yes — that ultimately comes out of your pocket when shelf prices for everything from electronics to clothes start climbing. This is not a 'somewhere else problem.'
Source: https://www.bbc.co.uk/news/articles/c9323zgq6wvo?at_medium=RSS&at_campaign=rss