The impact on global markets was initially limited, as investors viewed the conflict as contained. However, the prospect of a regional spillover has added to a sense of unease.
As the Israel-Hamas war draws into into its fourth week, the risks to the global economy are rising, economist Mohamed el-Erian said Monday.on Monday, after Israeli military said it had widened its ground offensive in Gaza as it continues its assault in response to the Oct.7 terror attacks by the Hamas militant group.
"The higher the risk of escalation, the higher the risk of contagion to the rest of the world in terms of economics and finance," he continued. Oil has been particularly volatile, amid concerns that an escalation could restrict supply from the energy-rich region. Oil prices surged on Friday, after Israel said its troops were expanding their ground operation, but"It is terrible in terms of economic prospects for the epicenter for the war," she said." negative impact on the neighbors: on trade channels, on tourism channels, cost of insurance."The Oct.