ISRAEL-PALESTINE CONFLICT IMPLICATIONS ON TRADE ROUTES
In light of the ongoing Israel-Palestine conflict and its potential implications on regional trade, there could be possible effects of the conflict on the trade routes, shipping and global economy. The situation will lead to a shift in the transportation of goods. Israel-Palestine conflict set to create challenges in maritime industry while trade continues with caution. Israel's high-tech exports to China to get impacted in the coming weeks owing to the war. Israel's export to US, Turkey, Germany, Italy and India to get disturbed in the coming weeks and the Israel-Palestinian conflict serves as a reminder of the uncertainties that ambitious trade projects like the India-Middle East-Europe Economic Corridor (IMEC) will face, which is perceived as a western counterpart to China's Belt and Road. Any expansion of the hostilities beyond the country's borders could introduce risks to two vital shipping choke points. The Suez Canal, a critical waterway for various commercial vessels, including container ships, may face disruptions. Similarly, the Strait of Hormuz, a backbone for oil and gas shipping, could be affected. However, the extent of these effects will largely depend on the conflict's expansion and duration.
Tags : Israel-Palestine conflict challenges maritime industry India-Middle East-Europe Economic Corridor IMEC Suez Canal