This has adversely affected oil production and exports.
The Gulf produces one-third of the world’s oil, and half of the world’s oil reserves are from the Gulf region.
As Israel continues to bombard Gaza, it is likely to spread to other areas. US Secretary of State Anthony Blinken intervened to contain the conflict and prevent it from spreading to the Middle East. As a major oil-producing and exporting region, if the war spreads, the already sluggish global economy could also face serious repercussions. The World Bank had warned that oil prices would rise by 56 percent to 75 percent to between $140 and $157 per barrel if the conflict worsened. But after the initial rise in prices, oil prices fell sharply due to lower demand and higher US crude stocks.
There are warnings that the direct effect of continuing the war will be small, but it will affect the Gulf economy. Observers also point out that financial uncertainty will increase due to fear. Observers point to the Syrian war as an example