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The political tensions in the Red Sea

The United States’ establishment of the multinational “Guardian of Welfare Operation” to ensure global maritime trade security is further escalating tensions in the Suez Canal and Red Sea region. This situation is causing concern for the safety and stability of trade routes.

On the other hand, it seems that these tensions are affecting the interest rate decision of the US Federal Reserve (Fed). As the Fed has previously announced, signals that it will go for a rate cut have created a positive atmosphere in global risk markets. However, tensions in the Suez Canal point to an increase in geopolitical risks that could lead the Fed to delay its rate cut decision.

According to analyzes, these tensions are leading to supply disruptions and rising energy prices, triggering inflation concerns. This situation could lead the Fed to adopt a more cautious approach to rate cuts.

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