Why the Red Sea Crisis Matters for Politics and Business
Over the past year, attacks on ships in the Red Sea have disrupted one of the world’s most important trade routes. While this may sound like a distant foreign policy issue, it has real consequences for global politics, businesses, and everyday consumers.
The Red Sea connects Europe and Asia through the Suez Canal. When shipping companies began diverting vessels around Africa to avoid attacks, journeys became longer and more expensive. This immediately raised costs for companies transporting food, fuel, and consumer goods, many of which were passed on to consumers through higher prices.
Politically, the crisis highlights how global trade depends on stability. States often talk about “freedom of navigation”, but this situation shows how easily conflict can disrupt international cooperation. It also demonstrates how non-state actors can influence global markets, forcing governments to respond through military protection or diplomacy.
From a business perspective, the crisis exposes weaknesses in global supply chains. Many companies rely on “just-in-time” delivery, meaning they hold minimal stock to save money. When shipping is delayed, this system breaks down. As a result, businesses are now rethinking whether efficiency should be prioritised over resilience.
The situation also raises legal and political questions. Who is responsible when deliveries are delayed? Should governments intervene to protect commercial interests? And how far should states go to safeguard trade routes without escalating conflict?
For students studying politics, the Red Sea crisis is a clear example of how geopolitics and economics are deeply connected. Decisions made in conflict zones do not stay local; they affect inflation, trade policy, and diplomatic relations worldwide. It shows that global politics is not just about governments, but about how power, security, and commerce interact in real time.