On the morning of Sunday, October 8th, 2023, the Palestinian militia group, Hamas, unexpectedly attacked Israel, resulting in the abduction of over a hundred individuals and the death of more than 900 Israelis.
Israel swiftly retaliated, and the ensuing confrontations have claimed the lives of over 500 Palestinians thus far with the figure expected to rise in the coming days and weeks.
Following the attack, Israeli Prime Minister, Netanyahu declared war against Hamas and initiated a siege on the Hamas-dominated Gaza Strip. Predictably, the US and most Western nations have denounced Hamas, labelling them a terrorist organization.
Conversely, Iran and several supporters of the Palestinian cause attribute the conflict to Israel’s territorial expansion into Palestinian regions, its ongoing occupation of what they term “Palestinian land”, and alleged acts of apartheid.
These factors, they assert, are the primary triggers of the present conflict. Globally, opinions are sharply divided, with vocal critics and proponents on both sides suggesting various resolutions to the escalating crisis.
As the international community anxiously monitors the situation, potential economic repercussions loom large. These effects could particularly impact Sub-Saharan African nations, such as Nigeria, which is currently grappling with significant economic hurdles.
Oil Prices and Energy Markets: The Middle East is a major hub for oil production and trade contributing around 33% of global crude oil production.
Effect on the Exchange Rate: As previously mentioned, the Middle East is crucial for global oil dynamics. An escalation in conflict can potentially impact oil prices.
Trade Relations: Nigeria, like many countries, maintains trade relations with Israel. While their trade volume isn’t massive, any prolonged conflict could disrupt trade ties or the ease of doing business between the two nations.
Global Economic Sentiment: The Israeli-Hamas conflict, especially if prolonged or escalated, can affect global economic sentiment, investor confidence, and risk perceptions.
Diaspora and Remittances: While the Nigerian diaspora in Israel is not as large as in some other countries, there are still Nigerians living, working, and studying in Israel.
Terrorism and Security Concerns: The Israeli-Hamas conflict could embolden or inspire extremist groups in Africa, including Nigeria.
Travel Advisories and Restrictions: In light of conflicts, many countries issue travel advisories to their citizens, cautioning them against non-essential travel to affected areas.
