Middle East ceasefire is a humanitarian and economic boon

THE breakthrough ceasefire between Israel and Hamas, which began to be implemented on Sunday (Jan 19), is first and foremost a humanitarian success after tens of thousands of innocent people have been killed or injured in the war. However, if the deal holds, it also has the potential to boost the regional and global economy at a time of wider geopolitical angst.

The troubling tensions in the Middle East have been a significant headwind for the global economy for the best part of 500 days, including energy markets. There has also been a possibility of escalation, including with missile attacks between Iran and Israel.

So, this held the prospects of higher oil prices that could have meant inflation was “higher for longer” in the major economies, In turn, this threatened slowing interest rate cuts in key economies in coming months.