Events in the Red Sea have resulted in higher prices of energy and food products.  

But what can be expected if this conflict carries on?

 
Hungarian economic expert Vasa Laszlo, in a statement to Ednews, emphasized that if security is not ensured in the straits, there will be an increase in prices in both the food and financial sectors:

"The prolongation of the Red Sea conflict and the escalation of tensions in the Middle East risk having a devastating impact on the world economy, with rising inflation and disrupting energy supplies.
Risks include financial stress on real interest rates, persistent inflation, weaker Chinese economic growth, further trade fragmentation and climate-related disasters.

Recent attacks on merchant ships transiting the Red Sea have already begun to disrupt key shipping lanes, eroding supply networks and increasing the likelihood of inflationary bottlenecks. In the event of an escalation of conflicts, the energy supply may also be significantly interrupted, which may result in a spike in energy prices. 

This would have significant spillover effects on other commodity prices and increase geopolitical and economic uncertainty, which in turn could dampen investment and lead to further weakening of growth".

Farid Akhund