Red Sea – Houthis – Israel – Hamas – Yemen – Hezbollah : Planet Money : NPR

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Photos taken by Yemeni Houthi rebels during an organized trip on November 22, 2023 showed that the “Galaxy Leader” cargo ship hijacked by the Houthi armed forces two days ago was docked at a port on the Red Sea in Hodeidah Province, Yemen.

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As the Middle East conflict spreads outward from Israel and Gaza, its economic impact has spread across the globe.

With attacks on merchant ships in the Red Sea, Hezbollah rocket attacks, US airstrikes on Yemen, blocked trade routes, and disrupted oil supplies, we are beginning to see the unfolding chain reactions of interconnected economies.

Our colleagues at NPR Tight coverage The human toll and political dynamics of the Gaza war; on today’s show we’ll look at two indicators of economic dislocation and try to track how far they will reach.

We started with the Red Sea, a key link in the global supply chain connected to the Suez Canal, through which about 15% of global shipping passes. This includes oil tankers and large container ships, carrying everything from microchips to furniture. As Houthi rebels attacked container ships in solidarity with Palestinians in Gaza, shipping companies had to reroute, increasing shipping times and costs. We looked at how maritime transport is a network, not just a chain, and tried to see which parts of the network could withstand more stress when the Red Sea and the Suez Canal become too dangerous to navigate.

Then, let’s consider what upgrading means for the region’s most important export: oil. The five steps of upgrading mean rising costs, which will affect other sectors such as food. However, some prices may rise faster than others.

Today’s episode is from Planet Money’s daily show. Planet Money IndicatorsThis column will use 10 minutes or less every weekday to interpret economic issues in the news from different perspectives. Subscribe Here Or click here apple / Spotify.

These Indicator episodes are hosted by Darian Woods, Paddy Hirsh, Wailin Wong and Adrian Ma. They were originally produced by Julia Ritchey and Corey Bridges, with engineering by Maggie Luthar and Josh Newell. They are fact-checked by Sierra Juarez and edited by Kate Concannon.

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Music: NPR Source Audio – “Future” and “Sunshine And My Grind”