The analysis presented on the Politico website regarding the effects of tensions in the Red Sea on the worldwide economy and the increase in inflation within the United States serves as a warning: The escalation in prices of commodities and fuels challenges the White House's endeavor to communicate Biden's economic agenda (Bidenomics) to American voters during a crucial election period.
This American publication highlights that the rise in conflicts in the Red Sea presents a challenging scenario for Democrats and President Joe Biden. Economic instability in this area ahead of the 2024 presidential elections in the United States may result in heightened inflation, which wouldn't bode well for Democrats.
Politico further explains: While trade interruptions and military clashes in the Red Sea primarily impact Europe, Africa, and the Middle East, the increasing global turmoil poses significant long-term risks to the United States. This turmoil could also lead to price increases for consumer goods. Any negative economic repercussions in the United States will impact voters who already harbor significant doubts about Biden's economic management.
Within the White House, senior economic advisors to Biden have viewed recent disruptions in transportation in the Red Sea and the Bab al-Mandab Strait as potential indicators of harm to the overall US economy. White House officials are worried that conflicts and economic fallout from these events could rapidly intensify.
Furthermore, it is mentioned: The economic and national security teams at the White House are closely monitoring fluctuations in oil prices, especially considering the potential for a broader conflict in the Middle East. Officials in the Biden administration worry that heightened conflict in the region could result in significant and politically sensitive increases in fuel prices, ultimately, effecting grocery stores throughout the United States.
Joe Glauber, who served as the chief economist at the United States Department of Agriculture during Barack Obama's administration and is now a Senior Research Fellow at the International Food Policy Research Institute and currently serves as interim Secretary of the Agricultural Market Information System (AMIS), remarks: "Persistent high energy prices would sustain food inflation. Additionally, possible disruptions in the global fertilizer supply, a critical element of food production, could intensify pressures on American farmers and consumers in retail outlets."
Democrats have largely played down concerns regarding the negative consequences of America's involvement with Yemeni forces and US military actions in Yemen, issues that are pivotal to Biden's potential reelection.
In the early hours of January 11th, the United States and the United Kingdom launched assaults on Yemeni positions in response to a resolution passed by the United Nations Security Council.
These strikes followed Yemeni army actions against Zionist vessels or ships heading to the occupied territories in the Red Sea and the Bab al-Mandab Strait in recent weeks, showing solidarity with the Palestinian resistance in Gaza.
The Yemeni military has pledged to persist in targeting vessels affiliated with this regime or those destined for occupied territories in the Red Sea until the Israeli government halts its assaults on Gaza.
Yemeni forces have underscored that maritime traffic in the Gulf of Aden and the Red Sea remains unrestricted to other vessels, ensuring their complete safety.
