A look at the Israeli-Palestinian conflict and its impact on global finance

Author: Alfred

The Hamas attack on October 7, 2023. A dramatic turn in ancient history. The Israeli-Palestinian confrontation continues to shake the world even in 2025. The conflict is not just dragging on – it is transforming. It affects everything. Finances, politics, the lives of millions.

1. The Roots of the Conflict: Millennium of Confrontation

The dispute is so ancient. It seems to have always existed. The Balfour Declaration of 1917. The UN plan of 1947. Five major wars. Numerous minor clashes.

For the Israelites, this is the promised land. A divine gift according to the Tanakh. The Jews lived in Canaan as early as 1600 BC. King David. Jerusalem as the capital. Flourishing. And then dispersion after the defeat by Rome. But the memory of the homeland is alive.

For Arab Palestinians, this land is also native. They have been there since 337 AD. After the emergence of Islam, the Arab population began to dominate. By 1882, Jews made up only 8% of the residents.

The Zionist movement. Pogroms in the Russian Empire. Jewish immigration to Palestine intensifies. The Holocaust. And finally - the establishment of Israel in 1948. The first war won by the Israelis. The conflict escalated fully.

2. The Logic of the Conflict: Past and Present

The basis of confrontation

The peace agreement in Oslo 1993. A breath of hope. The Nobel Peace Prize for Arafat and Rabin.

And again, a split. FATAH and HAMAS have chosen different paths. Violence has prevailed. The Gaza Strip is under HAMAS. The West Bank is under FATAH. Everything is separate.

Netanyahu and his right-wing government. Harsh policies towards Palestine. Internal protests in Israel.

Why did HAMAS attack in 2023? Two factors. Horrible conditions in Gaza – water, electricity, everything is limited. Plus support from Arab countries. And then it exploded.

How is the situation developing now?

HAMAS has become stronger. It is not so easy to contain it. Iran, Lebanon, Syria, Iraq – all support it. Even Saudi Arabia is on the side of Palestine, which is somewhat inconvenient for American plans.

2025, and there is no stability. The markets are in turmoil. Oil prices are fluctuating. Investors are nervous.

Jerusalem is an eternal question. A sacred city for both sides. Religion, history, symbols – everything is intertwined. And it seems that the solution will not be simple.

Tension simmers. Sometimes it flares up. And global markets react instantly – this has become a pattern that we have observed for years. It is not entirely clear when all this will end. Will it end at all?