The Observer – Red Sea crisis could shatter economic recovery hopes

The Observer carries a warning from some leading economists that the Red Sea “crisis” could “shatter” hopes of economic recovery around the world by reigniting inflation and disrupting energy supplies. Experts at the World Bank tell the paper that a prolonged crisis threatens to feed through into higher interest rates, lower growth, persistent inflation and greater uncertainty. The Observer says there is growing concern in government circles in London and Washington that a slowing global economy could harm Rishi Sunak and Joe Biden’s chances at the ballot box this year.