ISRAEL. The war with Hamas will cost Israel $6.8 billion

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The Israel Defense Forces have declared the northern town of Matula a restricted military zone, the Yedioth Ahronoth newspaper reported. Israel also plans to mobilize returnees on a general basis.

Israeli Ambassador to Russia Alexander Ben Zvi said that Jerusalem intends to mobilize emigrants from Russia. According to him, there is no separate count of returnees mobilized by Russia to Israel. Every Israeli citizen over the age of 18 is required to serve in the army, including women. “An Israeli citizen is an Israeli citizen, no matter where he comes from,” the ambassador added. Israel is conducting a massive mobilization of reservists for a ground operation following the Hamas attack. Now the IDF is using aviation and artillery to strike the Gaza Strip.

Alongside the military attacks, the cost of the war is starting to be reckoned with. The war with Hamas will cost Israel at least 27 billion shekels or 6.8 billion dollars, according to initial forecasts by Bank Hapoalim. Spending on the current war will amount to at least 1.5% of Israel’s GDP

The International Monetary Fund (IMF) warned on Tuesday that the global economy faces new uncertainty due to the war between Israel and Hamas and could suffer the fallout from the conflict in the Middle East, particularly on oil prices.

The International Monetary Fund expects global economic growth to slow to 2.9% in 2024 from the 3% expected this year.

The war has already dealt the first blow to the Gulf stock markets. On October 9th, the stock markets of the main Gulf countries were negatively affected by the conflict between Palestine and Israel, recording one of the worst collapses in recent years.

The Dubai Stock Exchange index thus collapsed by 2.6% (the worst result since last June); Abu Dhabi Stock Exchange – by 1.3%; Qatar Stock Exchange – by 1.7%. Saudi Arabia’s index fell less significantly – by 1.2%. There was a slight recovery when the US Federal Reserve does not intend to raise interest rates in the near future. The indices of Saudi Arabia and Qatar increased slightly (by 0.6% and 0.2% respectively), while the indices of Dubai and Abu Dhabi continued to decline, but not as significantly (-0.1% and -0.2%).

Antonio Albanese e Graziella Giaingiulio

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