(MENAFN) Mohamed Rajai Barakat, an European affairs expert, highlighted the potential adverse economic consequences stemming from escalating tensions in the Middle East. Barakat warned of a possible surge in oil prices, akin to the effects witnessed during the Ukraine conflict, which could translate into higher production costs and elevated consumer prices.
Moreover, he emphasized the repercussions of continued targeting or detention of ships in the region, exemplified by Iran's recent seizure of a vessel owned by an Israeli businessman. Such actions, coupled with the potential closure of key maritime passages like the Bab al-Mandab Strait, would drive up costs associated with maritime transportation, ship insurance, and the logistics of goods transportation, exerting a direct negative impact on the global economy. Barakat also underscored the economic fallout resulting from the Houthi militia's targeting of commercial ships in recent weeks, exacerbating the strain on the global economy.
Furthermore, economic expert Mazen Arshid, in exclusive statements to the same platform, shed light on disruptions witnessed in the aviation sector following Iran's strikes on Israel. Arshid noted the disruption and cancellation of numerous flights at Israeli airports, triggering broader implications for air traffic and causing economic losses within the sector. The need to bolster security measures and risk management further compounds the economic challenges faced by the aviation industry in the wake of escalating regional tensions.
These developments underscore the far-reaching economic ramifications of escalating tensions in the Middle East, impacting multiple sectors and posing challenges to global economic stability. As geopolitical uncertainties persist, stakeholders must remain vigilant in monitoring the evolving situation and its implications for various industries and economic actors.
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