Threats Of A Broader Mideast Conflict Could Spell Economic Disaster.

November 2, 2023 Glen Turpening

As Israel and Hamas continue the fighting there is always a threat that a larger conflict could break out causing Worldwide economic problems. (NY Times)

Fears that Israel’s expanding military operations in Gaza could escalate into a regional conflict are clouding the global economy’s outlook, threatening to dampen growth and reignite a rise in energy and food prices. Rich and poor nations were just beginning to catch their breath after a three-year string of economic shocks that included the Covid-19 pandemic and Russia’s invasion of Ukraine. Stinging inflation has been dropping, oil prices have stabilized and predicted recessions have been avoided. Now, some leading international financial institutions and private investors warn that the fragile recovery could turn bad. “This is the first time that we’ve had two energy shocks at the same time,” said Indermit Gill, chief economist at the World Bank, referring to the impact of the wars in Ukraine and the Middle East on oil and gas prices.

By Patricia Cohen, writing for 'The New York Times'

The Israel Hamas conflict is coming at precarious time in the pandemic recovery period. Just as the World was getting is footing and supply chains were coming back online the War broke out threatening all the progress that has been made. The Biden Administration is headed into a re-election year which invariably factors into every decision that is made with various constituencies pulling opposite directions.