Can diplomacy stop another Ethiopia-Eritrea war?

Ethiopia has installed a new administration in the conflict-hit Tigray region after federal forces regained control. This development has sparked renewed tensions with Eritrea, which has been accused of supporting the Tigrayan fighters. The ongoing diplomatic efforts aim to prevent another war between the two countries, which could have significant implications for regional stability and global trade. A wider conflict could disrupt key trade routes and impact the performance of regional indices such as the EBR (Ethiopian Stock Exchange) and the Eritrean Stock Exchange.

Why it matters

Ethiopia's new administration in Tigray may reduce conflict. However, tensions with Eritrea remain a concern for the region's stability.

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