How the Israel-Iran attacks could impact the global economy

The Middle East is the world’s foremost oil-producing region and a major centre for maritime trade. Its waterways are a critical thoroughfare for cargo ships transporting oil and container ships with goods and appliances on board. Flare-ups in the Middle East have a predictable impact on the oil price, causing it to spike as investors grow fearful about supply constraints because of possible blockages and attacks on these maritime routes. As a result, shipping insurance premiums also rise, which are ultimately passed on to the consumer. Brent crude, the international benchmark, was up 8%, at $75 (£55) a barrel. Follow…