Israel-Palestine conflict and its economic impact

The ongoing Israel-Palestine conflicts can lead to spikes in fuel oil prices. As the region accounts for nearly a third of global oil supply, any instability can create interruptions to it. The on-going Israel-Gaza conflict coming on the heel of the Russia-Ukraine crisis, remind us of the intricate web of global interdependencies. The World Bank has warned that this conflict represents an unnecessary global economic shock with potential spillover effects. It is a situation that negatively impacts both the economies and the regions.

The conflict in Israel and Palestine also has implications for the Asian countries that have large Muslim populations or close ties to the region. Countries like the US condemned the Hamas attacks and expressed support for Israel's right to self-defence. Conversely, countries like Indonesia and Malaysia have shown solidarity with the Palestinian cause and called for an end to Israeli aggression. China, a major power with interests in both Israel and Palestine, has urged restraint and peaceful dialogues. This conflict can affect Asian nations' trade, investment, security interests in the Middle East and their relations with the United States, a key ally of Israel.

Ali Afsar Uddin,

Student of Accounting and Finance Department,

North South University, Dhaka,

ali.uddin@northsouth.edu