I'm Nicole Lapin, the only financial expert you don't need a dictionary to understand.

It's time for some money rehab. When the war broke out in Israel on October 7th, we covered it a lot on the show

because it's a story that I promised you would affect the global economy and therefore you no matter where you are.

More than two long months later, we're seeing the financial ripple effects more than ever in a

war that's entirely on an economic battlefield right now. The conflict in the

Red Sea. Usually when I meet you here to chat about breaking news, my primary

objective is to unpack the headlines without the jargon.

But this is different because to be honest I am seeing very few headlines about this

yet, which is pretty surprising because this bubbling conflict has massive implications

for international trade, the American

economy, geopolitics of the Middle East, and whether the US would

actually engage in war in that part of the world. So my mission today isn't so much breaking down the headlines, but giving you a sneak

peek of what you'll see in the headlines soon, telling you what you need to know and showing you how to brace yourself

for potential economic fallout.

The Red Sea is one of the busiest trade routes in the world.

It literally moves markets, but most notably it's the trade route of choice for Chinese

products heading to Europe. 30% of all ocean container

traffic goes through the suas canal that's part of the Red Sea route. Beyond

Chinese-made products, this is also a common route for energy. About 12% of global oil goes through the

Red Sea and 8% of liquefied natural gas goes through the Red Sea. But now that

commercial lifeblood has become a war zone.

After Israel's counter-attack campaign against Hamas in Gaza, the Yemeni rebel group, the Hutis, pledged their support of Gaza.

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