The outbreak of conflict between Hamas and Israel this week has not yet spilled over into the wider Middle East and North Africa. But the situation is in flux and, if Iran were to be pulled into the conflict (either directly or through a tightening of sanctions), this could threaten global oil supply. The Gulf state’s economies would benefit from higher prices. But at the same time, they find themselves in a bind on the geopolitical front given their recent efforts to improve ties with Israel.
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