The Indicator from Planet Money · Thursday, September 17, 2026
The uncertainty surrounding the status of the Bab el-Mandeb Strait, dubbed 'Schrodinger's Strait,' is adding friction to the global economy. Even without a complete closure, the perceived risk elevates insurance costs and tank rates. This situation exacerbates existing supply deficits and refinery outages, leading to higher prices for crude oil and refined products like diesel and gasoline.
“Analysts have talked about Schrodinger Strait.”
“This question of is it really open, is it really closed, just this uncertainty about is it open or closed, the costs, the physical risks remain high.”
“These elevate insurance costs, they elevate tank rates, and all of this just adds friction to the global economy.”