Israel-Hamas War Impact Could Tip Global Economy Into Recession

Bloomberg (10/12/2023)
  • Bloomberg Economics researchers believe the global economic impact of the conflict between Israel and Hamas will be subdued should the conflict remain confined.
  • However, a spillover in the form of a proxy war between Israel and Iran (supporting Syrian and Lebanese militants) or a direct confrontation could push oil prices from $89 currently to $150 per barrel, reducing global growth by 1.7% ($1 trillion).
  • Iran could potentially close the Strait of Hormuz, through which one-fifth of the world’s daily oil supplies pass.