this post was submitted on 24 Aug 2024
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I'm shooting blind as I haven't looked too deep into how the blockade has impacted global trade, but I think this makes perfect sense for the US.
It isn't that much further away around the Cape than through the Suez to arrive from the South China Sea to the US east coast, and AFAIK most trade actually happens with the West Coast through the Pacific or through Panama. So higher shipping costs harm Europe much more than they harm the US in this case.
Just like the Ukraine War, sanctions on Russia and China and the Nord Stream, it seems the US is intending on using this blockade to cannibalise Europe's economy even further. Expect another year of negative growth in the EU, specially with China becoming a suitable replacement as a high-tech producer worldwide. They don't have to go either through Suez or around the Cape in order to ship to a majority of the world's population.
Absolutely, the economic impact is primarily affecting Europe and Israel.