French Economy Minister Bruno Le Maire warned that the current war between Israel and the Palestinians poses a threat to the global economy, while Japanese Finance Minister Shunichi Suzuki expressed concern about the escalating conflict between Israel and the Palestinian resistance after Operation Al-Aqsa Flood launched by the Palestinian resistance led by the Qassam Brigades against the Israeli occupation.
The two ministers warned on Thursday from Marrakech, Morocco, on the sidelines of the annual meetings of the International Monetary Fund and the World Bank, after the increasing Israeli bombardment of the Gaza Strip.
Besides the Arab-Israeli conflict, the French minister recalled the effects of the Russian invasion of Ukraine, "which was a major cause of the increase in inflation."
"We currently have a third geopolitical risk, the risk of the conflict in Israel spreading to the region as a whole, and this risk is a fundamental risk to the global economy," he said, noting that the consequences of the conflict in the Middle East would be "heavy" on global growth and energy prices.
Le Maire added that if this dispute remains limited, "the consequences on the price of oil will be limited, and today it is limited, as the price of a barrel has risen but in a limited way."
Japan's finance minister said several participants at the Group of Seven finance leaders' meeting in Marrakech expressed concern about the escalating conflict between Israel and the Palestinian resistance.
Georgieva considered the war in the Middle East a new cloud on the not bright horizon of the world economy (French)
Earlier, IMF Managing Director Kristalina Georgieva called the war in the Middle East "a new cloud on an already not very bright horizon for the global economy."
"We are closely monitoring how the situation will evolve, and how it affects the situation, especially the oil markets," she said.
She told a press conference in Marrakech that oil prices have fluctuated and markets are reacting, but it is too early to predict the full economic impact.
The International Energy Agency said Thursday that the conflict between Israel and the Palestinians "has not had a direct impact on oil flows" since it erupted on Saturday, and that "expectations" about a potential risk to the flow of oil supplies remain currently limited.
At dawn last Saturday, the Palestinian resistance in Gaza, led by the Qassam Brigades, launched Operation "Al-Aqsa Flood" in response to the occupation's continuous attacks against the Palestinian people, their properties and holy sites, especially Al-Aqsa Mosque, while Israel launched Operation Iron Swords and continues to launch intensive raids on the Gaza Strip, which has been besieged since 2006.