Local analyst explains economic impact from tensions in Middle East
AUSTIN (KXAN) — Tensions in the Middle East continue to escalate, as does its global economic reach.
“There are immediate economic risks for a lot of folks,” said Ryan Bohl, a geopolitical analyst with RANE—a risk intelligence company.
With cargo ships under attack in the Red Sea by the Iran-allied Houthi Militia, major supply chain issues could erupt.
“We’re not looking at a 2021 COVID crisis supply chain crisis,” said Bohl, “but we’re already seeing companies like Tesla and Volvo saying that they’re not going to be able to produce as many cars as a result of some of these shipping disruptions.”
Bohl said there is also the prospect of terrorism as the conflict continues.
“There’s an awful lot of ‘Bin Ladens’ that are being born in this moment–throughout the region throughout the Muslim world–who are being radicalized and may try to carry out attacks in the future.”
Bohl said U.S. officials continue to respond to the disruption in the Red Sea and on land, creating a bigger question.
“Americans need to start asking themselves a deeper, more strategic question. What is America’s role in the world? How much power are they willing to deploy to certain places? How much are they willing to balance unstable regions like the Middle East,” he said.
“America can’t be everywhere at once. Americans have to ask themselves that question as citizens, ‘How much can we do?’ and ‘What should we be doing?’ and ‘What sort of leaders should we trust to do that?'”
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