An Analysis of the Effects of the Israel-Hamas War on Industry, with Implications for Korean Policy

Hyun Ji Bing ()
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Hyun Ji Bing: Korea Institute for Industrial Economics and Trade, Postal: Sejong National Research Complex, Korea Institute for Industrial Economics and Trade, 370 Sicheong Dae-ro C-dong 8-12F 30147, Republic of Korea, http://www.kiet.re.kr

No 24-18, Industrial Economic Review from Korea Institute for Industrial Economics and Trade

Abstract: The Israel-Hamas conflict began on October 7, 2023, when Hamas, a Palestinian militant group, launched a coordinated attack on Israel. This offensive included a barrage of rockets launched from Gaza and infiltrations of armed fighters into Israeli territory by land, air, and sea. Hamas cited the visit of the Israeli security minister to the Al-Aqsa Mosque as direct provocation for the attack, but tensions had been building for years amid the Israeli government’s rightward lurch and increasingly hardline stance with regards to Palestinians. Hamas’ continued military campaign against Israel has had two knock-on effects. First, it has delayed (if not outright nixed) the normalization of relations with Saudi Arabia. Second, it has mobilized anti-Zionist sentiment among Palestinians and across the Arab world. While the Abraham Accords, signed between the UAE, Israel, and Bahrain, have escalated Palestine’s isolation in the Middle East, the Saudis are now reconsidering ties with Israel due to shifting public opinion in the Arab world following the outbreak of the conflict. The United States and the European Union have called for a ceasefire, but negotiations remain at an impasse due to conflicting demands. Hamas is pressing for a permanent ceasefire and a complete Israeli withdrawal, while Israel seeks a temporary ceasefire focused on prisoner exchanges and insists on continuing its military operations until Hamas is dismantled.

Keywords: Israel; Hamas; Iran; Middle East; war; conflict; Saudi Arabia; oil; oil prices; petropolitics (search for similar items in EconPapers)
JEL-codes: F51 F52 Q41 Q48 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2024-07-01
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