Olga Ponomareva, expert at the Economic Policy Foundation, spoke to TASS about the impact of the escalating Palestinian-Israeli conflict on the economies of countries in the region. According to the expert, the hostilities pose serious risks to the investment attractiveness and financial infrastructure of the Middle East.
Olga Ponomareva noted that, in addition to direct damage, the region will face increased external pressure. “Increased control and oversight by the U.S. and the EU over financial operations in the region is likely to occur, as is the expansion of sanctions lists targeting individuals and legal entities in the region, which will burden capital flows and financial transactions,” the expert stated.
Assessing the long-term consequences, Olga Ponomareva emphasized: “The scale of the current conflict will undoubtedly leave its mark on the position of the Middle East’s financial centers. Much will depend on how events unfold, the damage inflicted on the region’s banks, the format of the resolution, the pace of financial infrastructure recovery, and further guarantees for international investors.”