Skip to main content

First thoughts on the Israel-Gaza conflict

The attack by Hamas on Israel on Saturday has led to widespread casualties and deaths, and the declaration of war by Israel’s prime minister. From an economic perspective, the experience from the 2014 Gaza war suggests that the effects on Israel’s economy will be relatively small and short lived. But the situation is in flux and the economic effects will depend on the severity and length of the conflict, and the extent to which it spreads to the broader region. There are also important geopolitical implications, particularly if the tentative Saudi-Israel peace plan is derailed and/or it leads to greater tensions with Iran, both of which would add upwards pressure to oil prices.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access