Middle Eastern Economic Chaos

It has been over 100 days since Hamas's horrifying attacks on Israel started a war in Gaza, yet the conflict has just begun. On January 11th, American and British forces bombed Yemen, after months of Houthu missile strikes on ships in the Red Sea. Five days later Israel fired its biggest targeted bombardment yet on Lebanon. Although a regional war has yet to officially start as neither Israel nor America are wanting that to happen, there are serious issues economically in the Middle East beyond the areas of battle.

The neighboring countries of Egypt, Jordan, and Lebanon are dealing with economic downturn. Many potential visitors have cancelled their travel plans as there are concerns regarding escalation and attacks in these areas. These countries have a very heavy reliance on tourism in their economies as it typically makes up 35-50% of their economy.

There is also elevated uncertainty about the conflict which is causing a reduction in consumer and firm confidence, which could continue to drive down spending and investment. Due to the significance not only in the Middle East, but also the global implications this conflict has, it will definitely continue to influence global markets as well as their own domestic economies.