Fitch Ratings has warned that disruptions to navigation in the Red Sea, including the redirection of ships to avoid sailing in the region, will keep the political risk premium in key commodity markets such as oil and gas, chemicals, and fertilizers at current levels unless navigation or production disruptions worsen further.
Rising geopolitical risks, including recent shipping disruptions, will maintain the oil price premium without fundamental disruptions to actual oil production or a broader escalation of attacks on the region's most vital oil transport routes.
Source (Al-Sharq Al-Awsat Newspaper, Edited)
