Israel continued its war on Hamas on Friday by raiding Gaza after its recent killing of Yahya Sinwar, one of Hamas’ top commanders.
Background
Israel yesterday announced it had killed Yahya Sinwar, mastermind of the October 7, 2023 Hamas attacks on Israel in a raid on Palestine, a development that is seen as a landmark in Israelis fight against Hamas.
The October 7, 2023 attack was carried out by Hamas and several other palestinian militant groups who launched coordinated armed incursions from theGaza strip into southern Israel marking the first invasion of Israeli territory since the 1948 Arab-Israeli war.
Around 1,175people were killed in the attack which sparked off the Israeli Hamas war.
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Sustained Attacks on Gaza
Israel looks not to be stopping at killing Sinwar as it launched an Israeli Prime Minister Benjamin Netanyahu said the war sparked by Hamas’s October 7, 2023 attack was not over, but added that it was “the beginning of the end”. Of the war with its attack on Gaza expected to continue until Hamas resistance is totally crushed.
The War in Gaza and The Arab Resistance
In a visible defiance to Israel, the Arab world look not to be dampened by the recent killing of Sinwar by Israel, with Iranian authorities stating “When Muslims look up to Martyr Sinwarstanding on the battlefield – in combat attire and out in the open, not in a hideout, facing the enemy – the spirit of resistance will be strengthened.”
In response to the killing of Sinwar, Hezbolah who have been at war with Israel in Lebanon since September 23, 2024 as a spill over from the Israeli – Hamas war stated it was ready for a “transition to a new and escalatory phase in the confrontation with the Israeli enemy, which will be reflected in the developments and events of the coming days,”
Hezbolah has been at war with Israel for decades over the control of southern Lebanon with wars breaking out among both parties in 2006, 2015, 2018, 2023 and 2024.
Hamas Response
In its first public statement since the death of Yahyah Sinwar, Hamas which has run the Gaza strip since 2006 reiterated it was not going to give up the fight against Israel for the freedom of palestine from Israeli control.
Basem Naim, a member of the organization’s political bureau, told old NBC News that the organization would not let up on its fight.
“Hamas is a liberation movement led by people looking for freedom and dignity, and this cannot be eliminated.
“Israel believes that killing our leaders means the end of our movement and the struggle of the Palestinian people.”
Impact of the Middle East Crisis on The Global Economy
On Tuesday last week, Arbiterz earlier reported that Israeli officials stated that Israel would target Iran’s oil production facilities within Iran and other strategic sites in response to Iran’s ballistic missile attack.
However, Israel did not follow through, calming fears of a major disruption in the oil supply.
A weak demand from China and unreliable global economic data have also affected the outlook for oil markets this year.
However, the recent escalation in the Middle East has renewed fears of supply disruptions, as the conflict could potentially escalate into a broader regional war.
Oil prices rose above the 50-day moving average for the first time in two months following last week’s spike in the regional conflict.
Iran is ranked the ninth largest oil producer globally, accounting for about 4% of world oil production last year. As such, if Israel had responded, it would have had a genuine impact on oil prices in the coming days.
Implications for Nigeria
Nigeria’s economy heavily relies on oil and a shift in the global prices of oil would have a very significant impact on the country’s economic revolution.
On the one hand, while rising global oil prices could lead to a boom for Nigeria’s economy, potentially increasing government revenue and providing more funds for public spending, the country’s internal issues such as underinvestment in the oil sector, widespread oil theft, and inadequate infrastructure may affect Nigeria’s ability to fully capitalize upon the opportunity due to Nigeria’s ability to ramp up production and benefit from higher global prices being hampered by such issues.
Also, the rise in global oil prices would increase the cost of importing refined products like gasoline, leading to higher domestic fuel prices.
This could negate the benefits of increased oil export revenue, putting pressure on government subsidies and potentially worsening inflation.
Also, while higher oil prices could help stabilize the naira by boosting foreign reserves through increased dollar inflows, the volatility of the global economy presents a significant risk that might be caused by the middle east wars due to investors becoming more cautious about investing in emerging markets like Nigeria, reducing the flow of foreign capital into the country.
This could put further pressure on the naira, potentially leading to a currency crisis that would only worsen the country’s current economic challenges.
A sharp increase in oil prices may lead to short-term strengthening of Nigeria’s foreign reserves, which could stabilize the naira temporarily.
However, a protracted war could increase global financial market volatility, reducing demand for the naira and leading to depreciation.
The Central Bank of Nigeria (CBN) may be forced to deplete foreign reserves to stabilize the currency, which could increase pressure on the economy.