How can one narrow sea route move global energy prices?
Show answer & explanation
Answer: Key chokepoints carry major energy flows
Detours only add distance, not real cost — Not quite. A detour is not just a longer line on a map. It can mean more fuel, more time, more congestion, and higher insurance costs, which is why rerouting can affect prices quickly.
Route risk matters only after ports close — Partly right, but too narrow. Port closures matter, yet route risk can move markets even before that happens if traders expect delays, danger, or higher transport costs.
Key chokepoints carry major energy flows ✓ — Correct! A few chokepoints handle a large share of global oil and gas trade. When risk rises there, transport, insurance, and delivery costs can all rise fast.
More Economics in Daily Life questions
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