Global political tensions usually play a very important role in shaping people’s common perception of economic outlook. The latest Israeli anger against Gaza leading to more than 13,000 Palestinians dying including over 5,500 children by the 3rd month of November is the latest book of a pattern of Jewish violence against Palestinians that has been going on in the occupied Palestine since Zionist colonial settler state Israel was created in 1948.
Any rational discussion or discussion on the topic of Palestine has become nearly impossible in the West because any help for the Palestinian cause or any criticism of the Jewish federal or state faces charges of “antisemitism”. Given the US and its Western allies’ support for the imperial immigrant status Israel and continuing Arab opposition against the occupation of their land, there seems no end of violence in sight in held Palestine.
The plan of ignoring the traditional environment by the West has given rise to the current stage of the issue. When the UN secretary general lately pointed out that the October 7 strike had a historic background, which is a patently real statement, the Israeli Ambassador to the UN demanded that he be sacked quickly.
In reality, the US and its Western allies are partners in the profession of Palestine. In the context of the current Jewish anger against Gaza, US president Biden and his German partners like Sunak in the UK, Macron in France, Schotz in Germany, Meloni in Italy as well as Trudeau in Canada are completely implicated as partners of Netanyahu in mass death.
US president Joe Biden who reportedly said on June 5, 1986 that “If Israel did not exist, the United States would have to build it”. He was a Senator at that time. His place now as the leader of the US on Israel in the current cycle of Jewish genocide against the Palestinians in Gaza has not changed, if everything it has more strengthened, he is also louder than before. In truth, from US senator Harry Truman to Joe Biden that devotion has remained impenetrable.
The recent racist and Islamophobic rants in public against an Egyptian Muslim food cart vendor in New York and also calling the vendor a “terrorist” and saying the death of 4,000 Palestinian children in Gaza “wasn’t enough” by Stuart Seldowitz, a former deputy director of the US State Department’s Office of Israel and Palestinian Affairs (1999-2003) who worked for the National Security Council under the Obama administration following a State Department career that spanned five presidencies holding high positions indicate the type of people that are recruited to design and implement US government policies towards Arab and Muslim countries. During his career at the State Department, this crazed openly discriminatory was a three-time receiver of the Department’s “Superior Honour Award.
The latest Israel-Hamas conflict has the potential to cause immediate and long-term financial consequences. The Russia-Ukraine issue clearly demonstrated that how for conflicts may destroy the very complicated interconnectedness that form the global economic relations, notwithstanding the political implications. Some economists suggest that this conflict has the potential to disrupt global market.
Some central bank leaders in the West believe that inflation may be their biggest problem for the next two years. However, uncertainty surrounding financial markets and the whole global financial system amid continuous inflation, rising interest rates and ballooning government debt, the escalation of Israel-Hamas war, if militias in Lebanon and Syria join Hamas, was laid off a major financial crisis. Such problems also typically have a significant impact on property markets, exchange costs and commodity prices.
Goldman Sachs predicts that the Israel-Hamas war may have a sizable financial impact. Although it is more difficult to determine the long-term economic impact, these events may have a negative effect on owners’ behavior. Despite the ongoing Russia-Ukraine issue, which has already exacerbated the inflationary pressure, all of these possible outcomes depend on how the conflict develops in the upcoming weeks or months.
Under three different situations, Bloomberg Economics has looked at the possible effects of the war on the world economy. While the scale will vary in all three scenarios, the path is the same: more costly oil, higher prices, and slower growth. It predicts that oil prices was reach US $150.00 per barrel and a decrease in global development to 1.7% and a slowdown that reduces global output by about US $1 trillion.
The most traded item on the world market is fuel. Because it is both a rare and an essential item facing an inflationary demand, the petrol market is particularly dangerous. Fuel prices may increase as a result of any risk of disruption in the oil supply currently brought on by the Israel-Hamas war, which is typically referred to as the “oil price shock.” For a shock would increase food cost inflation, which has already been high in many developing nations, including Bangladesh. If the war broke out, not merely developing nations but also the developed world may have to deal with rising food and energy costs, which may make food insecurity worse all over the world.
Since Hamas launched its attack on Israel on October 7 under the name Operation Al-Aqsa Flood (In Arabic, “amaliyyat tufan al-Aqa), oil prices have been erratic. Crude oil prices may increase to more than US $150, according to the most recent quarterly update from the World Bank. If the Israel-Hamas combat gets worse, a barrel will cost 0. However, this is not shocking; Conflicts in the Middle East frequently cause price increases in oil, as was the case with the oil sanctions of 1973–74, the Egyptian Revolution of 1978–1979, and the Iran–Iraq war of 1980 as well as the first Gulf War of 1990–91. In fact, Brent crude oil and European natural gas prices increased by roughly 9% and 34%, respectively, since the start of the war.
Financial pressure on companies and households in developed as well as developing nations are being exacerbated by presently rising interest rates to combat inflation. To address the rising costs of doing business, many companies are considering laying off employees in the very near potential. Households are dealing with rising power and food costs that are undermining customer confidence. General customer trust is typically the most significant possible channel for spillover effects during times of war and other issues. In the wake of the Russia-Ukraine issue, consumer confidence in the Union region significantly declines. Consumer confidence may suffer as a result of the increased levels of uncertainty brought on by the Israel-Hamas conflict both locally and globally.
In the midst of the ongoing murder in Gaza, which was mediated by the Qatari state, it has been confirmed that Israel and Hamas have approved a ceasefire agreement and prisoner swap. On last Wednesday (November 22), the agreement was made public. However, Israeli Prime Minister Netanyahu vowed to carry on the conflict until Hamas was completely vanquished. The offer now seems to be in the process of stalling.
However, Gaza has now experienced extensive house, basic infrastructure, education, and healthcare facility loss, as well as the deaths of about 13,000 Palestinians, including more than 5,500 children. In fact, Hamas ‘ cross-border assault on Israel on October 7 sparked Israel’s land, water, and heat assault on the Gaza Strip, which has caused trauma and destruction in Gaza unlike anything the enclave has ever seen before.
In fact, on November 13, Israeli agriculture minister Avi Dichter succinctly stated, “Gaza Nakba 2023: That’s how it’ll close.” This is very indicative of the nation’s descent into the abyss and is deserving of an administrative brand for planned murder.
By the time Israel and Hamas agreed to a cease-fire, 13,000 Zionists had died, or 51.4% of all housing units in Gaza had been destroyed. There are no comparisons to the scope of the current destruction, despite the fact that Gaza has a longer history of conflict. Israel’s ground operation in Gaza in 2014 is thought to have cost more than $6 billion in economic terms. Now, the ongoing conflict is much longer and more destructive. Hundreds of thousands of Palestinians did become impoverished as a result of the war.
By the middle of November, Israel’s anger against Gaza had cost the Jewish business shut to $8 billion, with an additional $260 million being lost each day. The Times of Israel reported on November 21 that the battle costs US $269 million per day. According to estimates, the overall cost of conflict is about 10% of Israel’s GDP. The Jewish government’s A1 credit rating is currently being considered to be downgraded by the credit ratings company Moody’s.
The destructive effects of Israel’s battle of hostility against Gaza and how it is affecting businesses, work, consumer financing, and the Israeli government itself were described by The Financial Times in an analytical report that was released on November 6. To increase its active military force of 150,000, the Israeli army called up 360,000 more reserve soldiers, or about 8% of its workforce, for the war on Gaza. Thousands of workers are leaving their regular jobs to meet the front lines because military company is required for Israelis between the ages of 18 and 40.
On September 9, 2023, outside of the G20 meeting in New Delhi, the India-Middle East-Europe-Economic Corridor (IMEC) was announced. The hall was suggested as a route from India to Europe via the United Arab Emirates, Saudi Arabia, Jordan, Israel, and Greece. This is the most recent in a series of US-led initiatives designed to isolate Iran, combat China’s Belt and Road Initiative (BRI), and, more importantly, to promote economic ties between Israel and the major Arab economies. The IMEC is currently a victim of Israel’s conflict with the Palestinians in Gaza. It should be noted, though, that the IMEC faced numerous significant obstacles also prior to the Jewish attack on Gaza.
The attacks on October 7 by Hamas were a major success in defying established security measures and may have signaled the start of the Zionist Project’s larger unraveling. Israel’s chances have never been higher. The attack on October 7 severely damaged Jewish national confidence; The Zionist resident imperial state, however, continues to be gravely misled about its military and economic prowess.
Netanyahu, the prime minister of Israel, vowed to end Hamas and its rule in Gaza, but despite big flying bombardments and the huge ground offensive, these goals are still far from being accomplished. The Palestinian issue has been the pinnacle of 20th century foreign politics, according to Fyodor Lukyanov, Chairman of the Council on Foreign and Defence Policy in Russia. In terms of policy and what it has produced, we are likely witnessing the conclusion of this immediately.