"Sea lanes are absolutely vital to both Japan and South Korea, as they rely on maritime trade for exports and critical imports such as energy, raw materials and food. If these sea lanes were blocked for an extended period, the impact would be far more than just shipping delays. Energy prices would rise, factories would struggle to maintain production levels, food and input costs would increase and both economies could face a major strategic shock."
"An estimated $3.36 trillion worth of global trade passes through the tense waters around these islands every year. The vulnerability extends beyond a single location. The sea lanes serving Japan and South Korea form a continuous corridor, with the potential for significant economic disruption if any part of it is compromised."
The US-Iran standoff has severely affected international oil and gas trade, with lasting consequences even if a deal is reached. Japan depends on the Strait of Hormuz for 93% of its crude oil, while South Korea relies on it for 70% of its oil and 20% of its natural gas. A potential crisis in the South China Sea could exacerbate these issues. Maritime trade is crucial for both nations, and disruptions could lead to rising energy prices and economic shocks. The South China Sea is a significant flashpoint due to military tensions.
Read at www.dw.com
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