According to Spanish media reports on October 7th, Palestinian Hamas terrorists attacked Israel, which triggered war and economic anxiety. When the European Central Bank (ECB) is continuing its control over inflation, the conflict broke out, and experts have warned that there is an obvious risk of economic stagnation.
Rising oil prices and rising inflation are two direct consequences that people are strongly worried about, because it is still unknown how this conflict will evolve, how long it will last and what international impact it may have on the Arab world, including the impact on large crude oil producers. Without knowing how long the conflict will last and whether its shock wave will spread tensions to other countries in the region, all experts agree that it will not help curb inflation in European countries. The main and most direct concern is the further rise of oil prices, which has existed since the outbreak of the Ukrainian war.
The longer the armed confrontation between Hamas and Israel lasts, the more so. Even if the gunfire dies down, the tension in the region will still exist, because this in itself is a reason for the increase in uncertainty, which will immediately shift to the price of crude oil and its chain reaction to the western economy. Now, the Middle East war has broken out like a “black swan”. Economists use this word to describe completely unpredictable events, which has completely changed the calculation, strategy and dynamics of the market.
Post time: Oct-10-2023