War in Middle East: How will the Israel-Palestine conflict affect the economy?
As the conflict between Israel and Palestine continues, economists have analyzed how three different war scenarios could impact the global economy. They discuss how these scenarios may affect oil prices, global growth, inflation, and the market.
This short article is about said different scenarios as discussed by experts.
According to economists the ongoing Israel-Palestine conflict has the potential to affect the global economy in three different scenarios mentioned below:
1. Limited Conflict in Gaza: This scenario, similar to events in 2014, would have limited effects on oil prices and the global economy, with minimal global economic impact.
2. Proxy War: If the conflict escalates to a proxy war involving Iran-backed Lebanon and Syria, it could lead to higher economic costs. This scenario might result in higher oil prices, reducing global growth by 0.3 percentage points and adding about 0.2 points to global inflation.
3. Iran-Israel War: While less likely, this dangerous scenario could trigger a global recession. Rising oil prices and declining risky assets would significantly impact economic growth and raise inflation, potentially driving oil prices up to $150 per barrel.
These scenarios highlight the potential range of economic consequences, from limited impacts to the risk of a global recession and significant changes in oil prices and inflation.
HUMANITY OR BARBARITY?
However, these are only the economic aspects of what could happen. Undoubtedly, the most significant and tragic aspect of such conflicts is the loss of innocent lives. Unfortunately, when we look at the global responses, it seems that the importance of human lives is often overshadowed by considerations like oil and money. This is a sad reflection of how humanity has reached a point where such barbarity is still prevalent today.
