Warnings of Middle East conflict impact on global economy, oil prices

A new report released by The New York Times has highlighted potential global economic risks stemming from the escalating conflict in the Middle East, with a focus on rising oil prices.

Experts have warned that the war in Gaza could expand, threatening global oil supplies and triggering economic shocks. Former Citi political analyst Tina Fordham noted that investors, who previously downplayed the conflict’s impact, are now paying attention to the situation.

Markets have already seen some effects, with oil prices rising by 2% amid concerns over potential disruptions to oil flows. Central bank governors have emphasized the need to focus on long-term economic trends, while the IMF warned that further escalation could have significant global repercussions.

However, current commodity prices remain below peak levels, with Brent crude futures trading around $75 per barrel, supported by sufficient stockpiles.