Should the threat persist, economists think the decline inflation Europe enjoyed last year could slow down, pushing back a potential cut in key interest rates. IKEA boss Jesper Brodin said the Red Sea conflict has lengthened its shipping routes by about 10 days or longer though its customers aren’t affected. Ships traveling through the Red Sea carry about 40% of the goods that are traded between Europe and Asia. For Europe, the impact of the crisis would largely depend on the extent and duration of the disruption. “The Red Sea is not as dangerous to global trade as the events were a few years ago," said Lepperhoff.

Source: Wall Street Journal January 19, 2024 05:14 UTC