Israel-Hamas conflict is ‘new cloud’ darkening economic outlook -IMF chief.

On Thursday, IMF managing director Kristalina Georgieva called the Israel-Hamas war “heartbreaking” and jeopardized the already shaky global economy.

“We are closely monitoring how the situation evolves and how it is affecting, especially oil markets,” she added. She said oil prices and market reactions have fluctuated, but it was too early to assess the economic impact.

“Very clearly, this is a new cloud on not the safest horizon for the world economy, a new cloud darkening this horizon—and of course, not needed,” she told a press conference at the IMF and World Bank annual meetings.

Palestinian areas, notably Gaza, are in dire humanitarian distress because of the fighting. The IMF has warned that humanitarian challenges, including shortages of basic commodities and healthcare, might affect the region’s economic stability.

The Israel-Hamas war affects international aid and rehabilitation. The IMF understands that restoring infrastructure and the economy after the conflict would require significant financial resources, affecting the global economy.

The IMF has warned of geopolitical tensions from this battle in addition to economic issues. The region’s global powers add complexity and uncertainty, which can impact financial markets and commercial connections.

The Israel-Hamas war affects the world economy, not just the area. The IMF warns of potential effects on regional stability, energy markets, humanitarian issues, international aid, and geopolitics. This war must be continuously monitored for its effects on the global economy.