Dohuk- The war on Gaza and its consequences, which included multiple regions of the Middle East, dealt a blow to the global economy, especially the economy of Israel, in which government spending exceeded 140 billion dollars, and it also lost approximately 15 billion dollars from the attack on Lebanon, according to the international economics advisor and doctoral researcher at the University of Anglia. Ruskin Doctor Ziyad Al Hashemi.
Al-Hashemi pointed out during an international scientific symposium held online entitled “Conflicts in the Middle East and Their Impact on the Economy” that Israel’s economy shrank by 27% in the last quarter of this year, with expectations of zero growth until the end of the year, and the value of the shekel also declined against the dollar, which led to… It led to collapses in Israeli stock markets, especially in the technology sector, which constitutes 31% of GDP.
Al-Hashemi said during the symposium – which was organized by the Research Center at Cihan University in Dohuk, northern Iraq, with the participation of more than 100 political, economic and media figures from various countries of the world – that converting maritime transport routes from the Red Sea to longer routes has caused transport costs to rise significantly, explaining This increase affected the efficiency of international transport and raised insurance costs due to security risks.
It is noteworthy that the Houthis in Yemen began targeting ships heading to Israel to pressure them to lift the siege on Gaza, which expanded to include ships of other nationalities of countries that formed an alliance to stop targeting ships heading to Israeli ports.
He added that these challenges were reflected in commodity prices in Europe and the United States, as they rose by 300% in some cases.
Regarding the Arab economies, Al-Hashemi said that Egypt was among the countries most affected, as ship traffic through the Suez Canal decreased by 50%, which led to a decrease in the canal’s revenues by about 6 billion dollars. As for the Gulf countries, maritime transport costs increased by 150%. But transport traffic gradually began to recover.
Political influence
Regarding the major political transformations that the region may witness in the near future, the former Minister of Human Rights in the Kurdistan Regional Government of Iraq, Dr. Muhammad Ihsan, said that there is a possibility of a radical transformation in the Middle East as a result of the competition between the United States and China.
Dr. Ihsan said that the Middle East constitutes a major target for major powers due to the importance of its natural resources, especially in the energy sector.
He explained that Israel is also seeking to get rid of the axis of resistance, especially Hezbollah in Lebanon, which poses a direct threat to its security, and has also caused massive economic crises due to displacement and destruction in northern Israel, in addition to its attempt to prevent Iran from possessing the nuclear bomb.
For his part, Dr. Aqeel Abbas, a specialist in Middle Eastern affairs who holds a doctorate in cultural studies from Purdue University in the United States, said that the beginning of the decisive escalation between Iran and Israel was on October 7, 2023, when Israel decided to move to end Iran’s influence in the region.
Abbas stressed that the current conflict has transcended all traditional rules of engagement, pointing out the difficulty of reaching a peaceful solution, and that the war may continue for years.
He said that Iran has begun to feel the repercussions of its policies in the region, especially after the escalation of international pressure on it, noting that the election of a new president from the reformist movement in Iran came as an attempt to reduce international pressure and change the global outlook towards the Iranian regime.
Security risks
In turn, security expert and military expert, former Iraqi army officer Sarmad al-Bayati, said that the situation is very dangerous and may drag the entire region into a comprehensive war, noting that Iraq has a long history of wars and military exhaustion, so it does not have opportunities to enhance its defensive capabilities at the present time.
Al-Bayati indicated that Iraq will receive an advanced air defense system from South Korea in 2025, which may help strengthen its defenses. However, he explained that it lacks offensive capabilities on the level of Israel, which enhances the danger of any potential escalation.
