The Middle East conflict is widening, with a Houthi blockade in the Bab al-Mandeb Strait disrupting global shipping and unsettling energy markets. This escalation, following the abandonment of a ceasefire, risks extending disruptions beyond the Strait of Hormuz to the Red Sea. Traders are pricing in higher oil prices, freight costs, and insurance premiums, fueling renewed global inflationary pressures. For Pakistan, heavily reliant on imported energy, this poses a significant risk of an externally generated economic shock, potentially impacting local inflation and the USD/PKR rate.
بحوالہ / Source: www.brecorder.com