Red Sea blockade: How Europe is HIT HARDEST while the US reaps the benefits

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The Red Sea, a key route for European imports and exports, with 12% of global trade passing through it, has been blocked by Yemen's Houthis since 2023. 

 

🚢 Check out the damage European nations are facing.

▪️Shipping costs skyrocketed, with container freight rates from Asia to Europe jumping over 300% in some cases. The blockade forced European container ships to reroute around Africa’s Cape of Good Hope, adding 10-14 extra days to voyages. 

▪️Prolonged disruptions led to a 1.6% reduction in export growth for the euro area in 2024 and a 0.9% reduction in 2025.

▪️Manufacturing in Germany, France, and Italy suffered due to delayed deliveries of components. The disruption added to slower economic growth as industries struggled with uncertainty.

💰 How the US may line its pockets  

▪️The disruptions in the Red Sea led to increased oil prices, benefiting US oil exporters that capitalized on higher demand and pricing in international markets.

▪️Brent crude futures have soared by 1.42% to $71.58 per barrel, while West Texas Intermediate (WTI) futures have climbed 1.5% to $68.19 per barrel. 

▪️US LNG companies could capitalize by exporting more energy to affected regions as the blockade forces countries to look for alternative sources.

▪️US companies that provide security services see increased demand for maritime security, personnel protection, and infrastructure support in the region.

 

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