Hamas-Israel war an economic ‘earthquake’ for Middle East Multiple international airline stocks also dipped, including Delta, United and American Airlines.

“It will be very difficult to improve economically and financially because her are several key questions that we still don’t have answers to,” Azour said in a panel discussion at the IMF conference in Morocco.

“The oil prices have already increased by $5 as of the beginning of the week… while other markets did not move much it would be very challenging because of the magnitude, the speed and the unknowns to have a clear reading of the short-term and medium-term, but it is big, it is an earthquake.”

IMF Director of Middle East and Central Asia at spoke at a pannel discussion during the annual IMF conference on October 12, 2023. (Yusra Asif, Al Arabiya English)

However, while oil prices have risen because of the conflict, they are still low compared to price in the last few months, according to Azour.

Jolted global markets

The armed conflict, which Israel’s Prime Minister Benjamin Netanyahu called a “war,” has jolted global markets, with oil and gold prices soaring high, a stronger US dollar and a slump in airline stocks.

Investors were quick to react when the markets opened on Monday, causing an upheaval in gold and crude oil prices – they have since levelled off.

Multiple international airline stocks also dipped, including Delta, United and American Airlines along with some European airlines like Lufthansa and Brtish Airways.
While prices have now recovered, the travel situation continues to remain volatile.

Emirates airlines on Wednesday announced it is halting all flights to Tel Aviv until October 20. Other global airlines made similar decisions this week.

The Israel-Palestine war has caused significant casualties on both sides, killing over 700 Palestinians in Gaza and the West Bank and more than 900 Israelis and foreign nationals.