What are the potential economic implications of the conflict between Hamas and Israel?

**The Gaza Strip Outlook**\<br>•Four and a half billion dollars have already been pledged, but the challenge in the Gaza Strip goes beyond money<br>•So far, the annual cost has been estimated at $14 billion for the current conflict, but the conflict may last for years<br>•Egypt is looking to international agencies to take over the reconstruction of the Gaza Strip<br>•Egypt has already pledged $1 billion in aid, but the amount is significantly lower than what is needed<br>•The conflict is expected to last for years, which will result in chronic shortages of food, fuel, and other essentials<br><br>**Hamas**<br><br>•Hamas said it will refuse any Palestinian state that recognizes Israel and will continue its military campaign against Israel<br>•Hamas released Palestinian prisoners from Israeli jails in the Gaza Strip<br><br>**Reconstruction Efforts and Turmoil in the Region**<br><br>•Egypt may be facing a major financial strain from the reconstruction of the Gaza Strip<br>•UN Secretary-General António Guterres said that the conflict could last for years<br>•More than 15,000 people, including over 7,000 children, have been killed in the Gaza Strip since Oct. 7<br><br>**Israel Outlook**<br><br>•Israel has been experiencing an economic crisis, with prices of food skyrocketing<br>•War has resulted in the loss of tens of thousands of jobs<br>•The International Monetary Fund said that the war in Gaza will “significantly” drag down Israel’s economy<br>•Israel is seeking a bailout package and billions in aid from the US<br><br>**This is a post from an Israeli economist**\<br>I can tell you that there are expected shortages of food, fuel and medical equipment in the coming months that may last for years. The current war has resulted in the loss of tens of thousands of jobs, and the war has already cost billions of dollars in destruction and equipment. According to an official press release from the Israeli Ministry of Finance, the war in Gaza will result in the following: every year, the war in Gaza could cost Israel $14 billion every year, which is one-tenth of Israel’s entire budget. The war is expected to last for years, which means that it could cost Israel $100 billion or more. We have already lost tens of thousands of jobs, and if things continue the same way, we may lose hundreds of thousands of jobs. The current unemployment rate is 2.4%, but it could rise to 10% or higher. The international community has already pledged billions of dollars in aid, but that might not be enough. Israel may need billions of dollars in assistance every year. Israel is also expected to suffer from rising inflation and a degrading credit rating.