ABSTRACT
Beginning in the late 19th and early 20th centuries, the Israeli–Palestinian conflict peaked in 1948–1949, 1956, 1967, 1973, 1982, and 2006. Israel is a significant trading hub and contributor to the worldwide supply chain. Therefore, the fallout from an armed confrontation is negatively affecting commodity prices and international trading relationships. Israel is a major player in the world’s fertilizer sector, producing phosphate, potash, and semiconductors. The Middle East is one of the leading natural gas and oil suppliers. Palestinian commodities, including agricultural products and traditional crafts, are exported to regional and global markets. Notwithstanding the difficulties, the Palestinian economy benefits from tourism. Tourists are drawn to locations like Bethlehem and Jerusalem because of their historical and cultural value. The first half of 2023 saw a 3.0 % year-over-year decline in development in the Palestinian territories, primarily due to the sluggish post-pandemic recovery. The economy of Gaza, in particular, contracted by 4.4% per year in H1 2023 because of a notable decline in the forestry, fishing, and agricultural industries. This came about as a consequence of Israel imposing new limitations, in effect from August 2022, on the importation of products from Gaza into the West Bank. The chapter has five sections. The first section includes a description of the Israel–Palestine conflict; the second section includes a description of the economy of Israel and Palestine; the third section describes the economic impact of the Israel–Palestine conflict; the fourth section includes the impact of the Israel–Palestine conflict on developed economics; and the fifth section describes the methods or ways to minimize the economic impact of Israel–Palestine conflict on developed economies.
