Red Sea threat lays bare economic risks ahead of US and UK elections | Richard Partington

Panic is confined to media headlines for now but Britain is as addicted as ever to Asian imports

Escalating tensions in the Middle East, rising oil prices and lengthy delays to international shipping have been hogging the headlines in the past few days. Before this, the prospects for the world economy had been looking a little brighter. But with military intervention in the Red Sea and disruption to global trade, all bets are off.

As world leaders gather this week for the annual Davos meeting in Switzerland, the concern will be that last year's downward march for inflation will be halted by rising geopolitical tensions. Since the last mountaintop bash, conflict has spread from eastern Europe to the Middle East, while the risk of a new cold war is mounting - not least highlighted by China's frosty response to the election of Taiwan's new pro-sovereignty president last week.