The Israel-Hamas Conflict: Implications and Urgent Actions Needed

Economists are concerned about the potential major disruption to the global economy if the Israel-Hamas conflict escalates further. The conflict poses risks such as driving up energy prices and disrupting key trade routes. The Middle East is a crucial supplier of energy and a key shipping passageway for global trade. Any expansion of the war could lead to a long-term threat to global energy and trade infrastructure. The conflict has already led to increased economic uncertainty and could exacerbate existing economic challenges. Emerging market economies, particularly net energy importers, are vulnerable to sustained higher energy prices. The scale of devastation in Gaza will require significant reconstruction efforts, likely financed by Gulf powerhouses.