Israel's Recognition of Somaliland Sparks Red Sea Geopolitical Concerns; Oil and Safe Havens in Focu
Israel has formally recognized Somaliland as an independent sovereign state, signing a diplomatic agreement that has triggered immediate furor from the Somali government. While the diplomatic rift is regional, the strategic implications extend to the Red Sea shipping lanes, a critical artery for global trade and energy supplies. For financial markets, this development introduces a new layer of complexity to the Middle East geopolitical risk premium, potentially influencing Crude Oil (WTI/Brent) and Safe Haven flows.
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