From Fortune:

The Red Sea crisis has now reached its 30th day, causing serious concerns about wider conflict in the Middle East. The conflict has led to a rerouting of shipping vessels and has already had economic consequences, such as an increase in oil prices and shipping costs.

The conflict’s economic impact is uncertain, with experts highlighting the importance of maintaining a grounded perspective. While the crisis could lead to increased inflation and interest rates, it’s unclear how significant the long-term effects will be on the global economy.

The Red Sea crisis is already causing noticeable disruptions to global supply chains and shipping routes. Freight rates have soared 121%, and retailers such as Ikea are warning customers about potential delays and constraints due to the crisis. Transit volumes in the Suez Canal have also been cut in half, causing concerns about severe cost increases and crippled supply chains.

Though oil prices have risen in recent weeks, they have not yet reached the levels seen during previous global crises. Experts predict that oil prices may rise in the near term, but a surplus in U.S. crude supply and favorable weather conditions are likely to prevent a significant increase. In a worst-case scenario, where Iran is involved, oil prices could rise as high as $115 per barrel.



Read more: The Red Sea crisis is rekindling memories of the Ukraine War—but this time could be different