The Israel-Hamas war and the war in Ukraine, he said, “may have far-reaching impacts on energy and food markets, global trade and geopolitical relationships.”
Will Israel-Hamas war cause higher oil prices?
He points out that oil prices have stabilized amid the war between Ukraine and Russia, which involves major oil producers. So if the Israel-Hamas war remains contained, there is little likelihood for meaningfully higher oil prices. Jamie Cox, managing partner with Harris Financial Group, agrees.
Will the Middle East conflict affect the stock market?
But if the conflict broadens in the Middle East and oil prices move meaningfully higher for longer, the stock market is sure to view it as a negative. Although oil companies benefit from higher prices, a prolonged rise in oil prices would be a negative for the economy and the market as a whole.
