Israel–Palestine (Hamas) War and its Impact on Global Economy: With Special Reference of India
Author : Jamir Uddin Ahmed and Jakir Hussain
Abstract :
On May 14, 1948, David Ben-Gurion, the head of the Jewish Agency, proclaimed the establishment of the State of Israel. U.S. President Harry S. Truman recognized the new nation of Israel. Since the birth of Israel, the conflict between Israel and Palestine frequently happening. The immediate war between Israel-Palestine initiated on the 7th of October 2023 between Israel and Hamaz. The war received its global attention due to unexpected nature of attacks on both sides.
The catastrophic consequences of the Israel-Palestine war has increased the volatility in global financial markets, higher energy prices, decline in revenue from tourism and travels, disruption in trade and global supply chains, increase in the cost of insurance, recession risks, high inflation, raising cost for business and delay in business decision making.
The war is causing concern in India over the conflict’s potential impact on oil price. India is the third-largest oil consumer and importer and although India has been increasing its oil supply from Russia since the invasion of Ukraine in 2022, a major part of Indian imports still comes from west Asia. Between April and September 2023, 44% of Indian oil imports were from West Asia.
Through this paper an investigation will be carefully taken to look into the impacts of the war on global as well as Indian economy and few recommendations are forwarded to the policymakers to minimize the negative impacts.
Keywords :
Israel, Palestine, Financial Markets, Global Supply Chain, Oil Embargo, Middle East.
