The Impact of the Israel-Hamas Conflict on the World Economy and the US

Questions
Read the following NEWS item and share your perspective on the current war between Israel and  Hamas. Be respectful of each other’s opinions and try not to be political. How will this war affect the world economy and the US? (200+ words)
https://www.cnbc.com/2023/10/10/biden-condemns-terror-and-bloodshed-by-hamas-vows-to-support-israel.html
NO AI, CHEGG, BRAINY, ETC. 

Answer
1. Introduction
The two most prominent groups in this conflict between Israel and Palestine are the Israeli government and the Palestinian Authority (PA). The PA is comprised of two separate political entities, Fatah, which controls the West Bank of Palestine, and Hamas, which controls the Gaza Strip. The Gaza Strip is a narrow piece of land on the coast of the Mediterranean Sea, which is separated from Israel by a wall built by Israelis. It is important to understand that this conflict does not just affect Israel and Palestine, but other nations around the region. According to the Council on Foreign Relations, facilitation of peace between Israel and Palestine would benefit the Middle East and North Africa regional GDP by $2.4 trillion over the next decade. This would potentially increase growth by 3-5% of GDP per annum, or 1.5 to 2.6 million new jobs per year. This would also lead to development of human and physical capital as a result of preparatory investment. High productivity led by peace and stability could possibly raise the level of annual GDP growth by 6-10% per annum in some countries. This is saying that if peace would result in a better quality of life over time for a multitude of countries surrounding Israel and Palestine. The future of the conflict is unclear, so it is important to analyze the most recent conflict and its effect on Israel and Palestine, as well as the rest of the world.
1.1 Background of the Israel-Hamas Conflict
Hamas is an Arabic acronym for the Islamic Resistance Movement and is Palestine’s predominant fundamentalist Islamic organization. It was established in 1987 at the beginning of the first Intifada, an uprising against Israeli occupation of Palestinian territories, which began in December 1987. Sparked by a visit by then Israeli opposition leader Ariel Sharon to the Al-Aqsa Mosque in Jerusalem, it led to increased Israeli security measures and resulted in more violence. In its beginning, Hamas’ main goal was to destroy the state of Israel, a goal they still maintain today. The movement’s founders pulled together various religious, charity, and political organizations, and in 1989 created Dawah, an underground network that provided health, education, and welfare services. These were seen as an alternative to the various Israeli sponsored institutions and sometimes as a means to gain support for Hamas’ activities. Due to the violent nature of the Intifada, Israel detained and deported a large number of Palestinians, mostly activists of the PLO and leftist groups, who were leaders in the first Intifada. With the added effect of the Gulf War and the subsequent peace conferences, this left a huge political void in the Occupied territories and Hamas gained a lot of support and popularity. During its years in operation, Hamas has been involved in countless violent and more recently, political activities.
In the simplest terms, the Israeli-Palestinian conflict is over territory. Israel currently holds a lot of the land that is also claimed by Palestine. This has led to wars and many peace talks. As of recent, the main powers of Palestine, Hamas, and the state of Israel agreed to a ceasefire. This was a later development and escalation in the situation had severe impact on not just the surrounding countries, but much of the world. To gain a full understanding of the context of this ceasefire and the conflict at the present time, a situational analysis of the conflict is necessary. This analysis will be explained using various tools and frameworks learnt throughout the Strategic Management course.
1.2 Purpose of the Analysis
This analysis was initiated with the purpose to provide a detailed informative study on the impact of the Israel-Hamas conflict on the world economy and the US. The great expansions in monetary terms affect the political decisions. The impact can be considered minor, but in the detailed aspects, economy plays a huge role in every decision of the political authority. The impact clarifies the strength of political and economic decisions. War and conflict can shake and be a cause of a broken economy. Every decision of political authority is based on the strength of the nation, and the budget available. The decisions are based to act tough and firm or soft and apologetic? The stance with the world economy decides the decision. If the impact is great, then decisions will be adapted to recover and to regain the status of the nation. If the impact is minor, no relevant steps will be taken to change the decisions.
2. Economic Implications
2.1 Global Trade Disruptions
2.2 Stock Market Volatility
2.3 Impact on Oil Prices
2.4 Tourism and Travel Industry
2.5 Foreign Direct Investment (FDI)
3. Regional and Global Security Concerns
3.1 Escalation of Regional Tensions
3.2 Threats to International Peace
3.3 Implications for Diplomatic Relations
4. Humanitarian Crisis and Aid Efforts
4.1 Displacement of Civilians
4.2 Humanitarian Assistance
4.3 Role of International Organizations
5. US Involvement and Policy Considerations
5.1 Historical US-Israel Relations
5.2 US Diplomatic Efforts
5.3 Military Assistance and Arms Sales
5.4 Impact on US Foreign Policy
6. Long-Term Economic and Political Consequences
6.1 Rebuilding and Reconstruction Costs
6.2 Socioeconomic Impacts on Israel and Gaza
6.3 Political Dynamics in the Middle East
6.4 Potential for Future Conflicts
7. Conclusion