When conflict disturbs a vital energy corridor, the consequences travel far beyond the battlefield. There are moments in world affairs when the use of force is followed almost immediately by the spread of consequence. This is one of them. What has unfolded in and around the Gulf is no longer merely a military development or a regional flashpoint. It is a reminder that when conflict disturbs a vital energy corridor, the effects do not remain confined to missiles, maps, and official statements. They travel outward into prices, shipping risk, insurance costs, inflation, currency pressure, and shaken confidence. In an interdependent world, instability in one narrow corridor can become economic strain across continents.
Author:
Siddhartha Kumar, Partner