Concerns about rising living costs due to the conflict between Donald Trump and Iran have intensified, with the Iranian regime considering the closure of a key waterway – a move that could severely impact western economies.
The uncertainty surrounding the status of the Strait of Hormuz, a vital trade route that Iran has mostly kept closed since reaching a ceasefire with the Trump administration, has led to persistently high prices for crude oil and oil-related products like gasoline. While peace talks are scheduled to resume in Islamabad, the capital of Pakistan, today, leaders on both sides are displaying their strength.
Iran possesses strategic control over the Hormuz strait and its counterpart, the Bab el-Mandeb Strait, known as the “Gate of Tears,” serves as a crucial alternative route.
As Hormuz remains inaccessible, the Bab el-Mandeb Strait has become a primary shipping passage, with numerous vessels passing through daily while traffic stalls in the former. Unlike the Hormuz strait, Iran does not directly control the alternate route, located thousands of miles to the west, off the coast of Yemen.
Control of the Bab el-Mandeb Strait lies with Iran-aligned Houthi rebels, who have threatened to close it, according to a UK intelligence report. The report also highlights Iran’s possession of ballistic missiles and drones, emphasizing the significance of the alternative passage.
A senior Houthi official warned that the strait could be shut if President Donald Trump continues to obstruct peace efforts. The closure of the Bab el-Mandeb, connecting the Red Sea and the Gulf of Aden, would have major implications for global trade, especially for oil and fuel shipments between the Gulf, Europe, and Asia.
Experts caution that such a closure could severely impact the global economy, affecting major oil exporters. Noam Raydan, a senior fellow at The Washington Institute for Near East Policy, stated that a scenario similar to the Strait of Hormuz closure would significantly strain the global economy and disrupt commodity movements through key regional chokepoints.
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