This promises to be a momentous week. Not only does Donald Trump return to the White House, but a ceasefire has begun between Israel and Hamas.
If this endures and leads to a proper peace between the two parties, there is no doubt that, in human terms, it would be a fantastic result. That factor overshadows any economic considerations. Nevertheless, there could be economic consequences and they need to be evaluated.
As with so much else in the Middle East, the economic impact of this development will depend critically upon what happens to oil prices. As it is, they have recently been rising, with Brent crude reaching a three-month high of above $82 per barrel.
This spike has not been related to Middle Eastern issues, but rather reflects anxiety about the possible loss of oil supply following the intensification of US sanctions on Russia’s oil supply chain.
With regard to the impact of the Israel-Hamas deal on the global oil market, everything depends upon what happens between Israel, supported by the US, and Iran. With Trump back in the White House, it is very difficult to judge how this is going to develop.
This promises to be a momentous week. Not only does Donald Trump return to the White House, but a ceasefire has begun between Israel and Hamas.
If this endures and leads to a proper peace between the two parties, there is no doubt that, in human terms, it would be a fantastic result. That factor overshadows any economic considerations. Nevertheless, there could be economic consequences and they need to be evaluated.
As with so much else in the Middle East, the economic impact of this development will depend critically upon what happens to oil prices. As it is, they have recently been rising, with Brent crude reaching a three-month high of above $82 per barrel.
This spike has not been related to Middle Eastern issues, but rather reflects anxiety about the possible loss of oil supply following the intensification of US sanctions on Russia’s oil supply chain.
With regard to the impact of the Israel-Hamas deal on the global oil market, everything depends upon what happens between Israel, supported by the US, and Iran. With Trump back in the White House, it is very difficult to judge how this is going to develop.