Economic repercussions of Israel’s war on Palestine

Empowering Weak & Oppressed

Crescent International

Jumada' al-Ula' 18, 1445 2023-12-02

Daily News Analysis

by Crescent International

It is now obvious that the war on Palestine is having serious negative repercussions on the Israeli economy.

While many political and economic analysts are focused on immediate econometric aspects of the unprecedented regional situation, what is beneath the surface in economic terms is far more significant.

It should be kept in mind, in economics not everything that counts can be counted.

It is well known that Israel is a subsidized entity. Without economic backing from NATO regimes led by the US, Israel would have collapsed long ago.

American politicians assumed that by pressuring Washington-backed dictatorships to recognize apartheid Israel as a legitimate state entity, they would trigger organic economic interactions between Israel, wealthy GCC regimes and western economies.

This was the wishful economic goal of the entire “normalization” process.

This wishful thinking was just that: wishful thinking.

The reality of Israel’s economic unsustainability as an independent entity is currently in full view.

From day one of the current low intensity regional war, zionist officials had to rely on American financial and military aid.

People and businesses fear instability.

The more unstable the region is, the less likely that it will attract long-term strategic investment.

This also applies to the adversaries of the US-zionist nexus, but they are slowly but surely diversifying their economies away from the declining western economies.

Also, they are not fully reliant on western handouts to remain afloat.

Overall, Israel is in an unprecedented economic situation.

More and more taxpayers in western countries are growing uneasy with their regimes sending money to a genocidal regime in a distant place.

Economic tremors of the ongoing low-intensity regional war are also having effect on other US surrogates in the region.

For Machiavellian reasons, the GCC regimes and Türkiye are unlikely to increase their economic activities with Israel soon.

This means that whatever additional revenue Israel and the regimes trading with it were counting on because of “normalization” will not materialize.

As pro-US dictatorships clearly demonstrate their inability to stand up to zionist Israel, an already existing divide between western-backed autocracies and their populations is growing at a faster pace.

This means that places like Egypt, Jordan, Bahrain, and Morocco are likely to experience some form of political instability as the war on Palestine continues.

Naturally, these places will be less attractive for business purposes.

While this may look simply like an economic problem of the listed countries, the regimes in those countries are Israel’s and America’s puppets.

Economic problems leading to unrest there will chip away at Israeli and American influence.

Perhaps the most underestimated impact on Israel and the overall global economy are the actions of Yemen against Israeli affiliated ships sailing through the Red Sea.

While in econometric terms Yemen’s actions might appear minor, the overall impact is quite significant.

In economics, perception often shapes reality.

Israeli companies engaged in global trade in West Asia via the region’s leading shipping routes will be seen as greater liability and a bigger risk to insurance firms.

This will undoubtedly increase the cost for many Israeli transactions.

The regional dimension of the war is on the path towards escalation.

Western enablers of Israel are showing that they are unable to restrain the zionist war mongers.

Once the Lebanese front escalates, which is only a matter of time, economic pain will grow for Israel and its enablers.