Ethiopia and Eritrea continue military buildup in northern Tigray region, deploying troops and military equipment that signals potential return to open conflict. This development raises fresh concerns about stability across the volatile Horn of Africa, where previous fighting caused significant economic disruption and humanitarian crises affecting international trade.

The renewed military activity threatens to destabilize an already fragile peace process that followed a brutal two-year civil war in Tigray. International observers worry escalating tensions could disrupt trade routes through the region, affecting supply chains for businesses operating in Ethiopia and neighboring countries dependent on these corridors.

Bloomberg Markets has been closely monitoring the situation, with Simon Marks speaking to Horizons Middle East and Africa anchor Joumanna Bercetche about the latest developments. The growing military presence suggests both countries are preparing for potential hostilities despite diplomatic efforts to resolve tensions peacefully, with economic consequences potentially extending beyond the immediate conflict zone.