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Middle East Wars And Impact On Economies

From territorial disputes to ideological clashes, the impact of "Middle East wars" reverberates across borders, leaving an indelible mark on the political, social, and economic fabric of the area.

James Foster
James Foster
Dec 27, 20237 Shares3.4K Views
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  1. Gulf War
  2. Iran–Iraq War
  3. Iraq War
  4. Six-Day War
  5. 2023 Israel - Hamas War
  6. Middle East War - FAQs
  7. Final Words
Middle East Wars And Impact On Economies

The Middle East has been a region of conflict for centuries, with various wars and conflicts shaping its history. The most recent conflict, often referred to as the Middle East war, has been ongoing for several years and involves multiple countries and factions. The conflict has resulted in significant loss of life and displacement of people, as well as political and economic instability in the region.

As the world watches with bated breath, understanding the roots and ramifications of the Middle East war becomes paramount in deciphering the future of this volatile region. Understanding the causes and consequences of this conflict is crucial for policymakers and citizens alike. In this article, we will be discussing some wars in the Middle East.

Gulf War

Man in Camouflage Jacket Lying on Green Grass Field
Man in Camouflage Jacket Lying on Green Grass Field

The Gulf War was primarily caused by the Iraqi invasion of Kuwait on August 2, 1990. Saddam Hussein, the leader of Iraq, ordered the invasion and occupation of Kuwait with the apparent aim of acquiring Kuwait's large oil reserves, canceling a large debt Iraq owed Kuwait, and expanding Iraqi power in the region.

Iraq's interpretation of Kuwait's refusal to decrease oil production as an act of aggression towards the Iraqi economy also contributed to the hostilities. The international community, led by the United Nations and the United States, swiftly condemned the invasion and imposed a trade embargo on Iraq.

A US-led coalition force, made up of nearly one million service personnel from 32 countries, was assembled to expel the Iraqis from Kuwait should diplomacy fail. The Gulf War was a significant international conflict that marked the first major crisis of the post-Cold War era. The war ultimately led to the liberation of Kuwait and the restoration of its government, but it also had lasting consequences for the region and the global political landscape.

Impact Of The Gulf War On Iraq

The Gulf War had a significant impact on Iraq, leading to a range of consequences that affected the country for years to come. Some of the critical impacts of the Gulf War on Iraq include:

  • Social and Humanitarian Impact- The war led to widespread poverty, malnutrition, and a deterioration of public services in Iraq. The country also faced a humanitarian crisis, with millions of people suffering from food and medicine shortages.
  • Environmental Damage- The war and its aftermath caused significant environmental damage in Iraq, including the destruction of oil wells, which led to widespread pollution and environmental degradation.
  • Political Consequences - The war weakened Saddam Hussein's regime and led to increased international isolation of Iraq. The country faced ongoing political instability and internal conflict in the years following the war.

What Was The Impact Of The Gulf War On The Economy?

The Gulf War had a significant impact on Iraq's economy. The war caused widespread destruction of infrastructure, including oil wells, refineries, and pipelines, which led to a significant decline in oil production and exports.

The loss of revenue from oil exports, combined with the cost of reparations payments and the impact of international sanctions, had a devastating effect on Iraq's economy.

The country faced a severe economic crisis, with high levels of poverty, malnutrition, and a deterioration of public services. The war also had a significant impact on the environment, with the destruction of oil wells leading to widespread pollution and environmental degradation.

The economic consequences of the Gulf War were not limited to Iraq. The war had a broader impact on the global economy, with disruptions to oil supplies and increased geopolitical tensions affecting markets and trade.

The impact of the war on neighboring countries, such as Kuwait and Iran, was also significant, with both countries facing economic challenges in the aftermath of the conflict.

Iran–Iraq War

The Iran-Iraq War, which broke out in September 1980 and lasted until August 1988, was an eight-year military confrontation between Iran and Iraq. It started with the Iraqi invasion of Iran and concluded with both parties accepting UN Security Council Resolution 598. Iraq's intention to stop the Ruhollah Khomeini-led Iranian Revolution from being exported was the primary justification for the invasion against Iran.

The battle was marked by strategies evocative of World Battle I, including massive trench warfare, Iraq's deployment of chemical weapons, and targeted strikes on civilian targets. An essential aspect of the conflict was the official celebration of martyrdom among Iranian youth, which encouraged the employment of people wave assaults on a large scale.

Both nations suffered greatly as a result of the conflict, which resulted in war fatigue, economic destruction, and low morale. Iran finally accepted a ceasefire mediated by the UN Security Council as a result of the international community's inaction regarding the Iraqi military's use of WMD against Iranian soldiers and civilians and the escalating military tensions between Iran and the US.

Chainmails and Helmets on Ground
Chainmails and Helmets on Ground

What Were The Leading Causes Of The Iran-Iraq War?

The Iran-Iraq War had many complicated origins involving geopolitical, ideological, and geographical considerations. Iraq's main justifications for attacking Iran were to stop the Ruhollah Khomeini-led Iranian Revolution from being exported and to ease worries that the new Iranian philosophy would spread throughout the country.

The tyrant Saddam Hussein of Iraq invaded Iran to seize control of the Shatt al-Arab River and acquire the oil-rich region of Khuzestan, which sparked the start of the conflict. Tensions that preceded the conflict were exacerbated by Iran's Islamic revolution and its backing for Islamic uprisings throughout the Muslim world, particularly in Iraq. Problems with borders and Iranian meddling in Iraq made matters worse.

What Was The Impact Of The Iran-Iraq War On The Economy?

The Iran-Iraq War drastically affected both nations' economies. Iran and Iraq lost a lot of oil money during the conflict, which produced economic disruption, diminished industrial and petroleum development, and agricultural decline. Iraq's oil output dropped from 3.3 million barrels per day to 0.8 million, while Iraqi strikes impacted Iran's oil industry, mainly in war-torn regions.

The devastation of refineries, pipelines, and industrial sites slowed oil output, causing an economic crisis and foreign exchange deficit. The Iran-Iraq War affected the global economy, notably the oil sector. The battle reduced oil earnings, lowering global oil supplies and raising prices. The battle also reduced oil output as Iran and Iraq, key oil producers, could not recover prewar levels. This hampered Gulf oil output, raising prices.

The conflict hurt Iran and Iraq's economy, resulting in high war expenses and external debts. Iraq's economy, which had been growing in the 1970s, plunged during the war, and it accrued over 100 billion dollars in external debt. The conflict reduced oil output and productivity and caused a 30-year economic crisis in Iran.

Iraq War

The Iraq War, also referred to as the Second Gulf War, was an extensive armed confrontation that started in 2003 when a coalition led by the United States invaded Iraq and toppled Saddam Hussein's regime. The conflict ended formally in 2011 after over nine years. It had a significant role in both the fight on terror and the combat in Iraq.

On one side of the conflict were the Iraqi government and other rebel organizations, while on the other were the United States, the United Kingdom, Australia, and Poland, among others. The conflict claimed a great deal of lives and had a lasting effect on the area, contributing to the emergence of the Islamic State of Iraq and the Levant (ISIL).

The conflict was quite contentious and is being discussed and examined today. Millions of people were displaced, and hundreds of thousands of lives were lost as a result of the conflict, according to critics who said it was based on faulty intelligence. On the other side, proponents of the war contended that it was essential to overthrow a cruel tyrant and advance stability and democracy in the area.

What Were The Main Reasons For The Iraq War?

The main reasons for the Iraq War were a combination of factors, including the belief that Iraq possessed weapons of mass destruction (WMDs), the desire to end Saddam Hussein's support for terrorism, and the goal of promoting democracy and stability in the region.

The US-led coalition argued that Iraq's possession of WMDs posed a threat to international peace and security and that military intervention was necessary to disarm Iraq of these weapons. However, no WMDs were found in Iraq after the invasion.

Other factors that contributed to the decision to invade Iraq included the desire to establish American hegemony in the Middle East and to send a message to other countries that American power was here to stay. The US-led coalition also faced opposition from some Middle Eastern countries, such as Saudi Arabia, which did not support the invasion.

What Was The Impact Of The Iraq War On The Economy?

The Iraq War had a significant impact on the economy, both in Iraq and globally. The war led to a broader militarization of Iraq's economy, draining human and financial resources away from manufacturing and agriculture.

By the time of the invasion, Iraq had become one of the world's poorest and most underdeveloped countries, with average annual income falling sharply. The war also resulted in the increase of foreign debt and the abandonment of development projects.

The global economy was also affected by the war. The war in Iraq was unlikely to stimulate economic growth in the US or the global economy and created many risks for the global economy, which could translate into slower growth for some time.

The war contributed to significant economic setbacks in the United States through lost opportunities for investment in public infrastructure and services and higher borrowing rates. War spending financed entirely by debt contributed to a higher ratio of national debt to Gross Domestic Product (GDP) and subsequent rising long-term interest rates.

Black Smoke Coming From Fire
Black Smoke Coming From Fire

Six-Day War

The Six-Day War, also known as the 1967 Arab-Israeli War or Third Arab-Israeli War, took place from June 5 to 10, 1967, and involved Israel fighting against a coalition of Arab states, primarily Egypt, Syria, and Jordan. The conflict began when Israel launched an attack against Egypt, which eventually led to a war that Israel won, capturing significant territories.

The war was part of the Arab-Israeli conflict and had significant consequences for the region. Israel fought against a coalition of Arab states, with Israel having a total of 264,000 troops, 250-300 combat aircraft, and 800 tanks, while the Arab forces had varying numbers of troops and equipment. The conflict resulted in 776-983 Israeli deaths, 4,517 wounded, 15 captured, 400 tanks destroyed, and 46 aircraft destroyed.

What Were The Leading Causes Of The Six-Day War?

The Six-Day War, fought between June 5 and June 10, 1967, was the result of both longstanding and immediate issues between Israel and its Arab neighbors, primarily Egypt, Jordan, and Syria.

The conflict began with Israel's founding, the Palestinian refugee crisis, and Israel's invasion of Egypt during the 1956 Suez Crisis, which grieved the Arab world. Arab nationalist leaders, notably Egyptian President Gamal Abdel Nasser, threatened Israel's Jewish population, weakening ties and causing border conflicts in the mid-1960s.

A disagreement between Israel and Egypt over Israeli shipping's Suez Canal and Red Sea passage rights started the war. After disinformation regarding Israeli intentions, the issue worsened in May 1967, resulting in the Six-Day War.

When Syrian artillery on the Golan Heights fired on an Israeli tractor cultivating in the demilitarized zone in April 1967, it led to the conflict. Tensions rose, and conflict began after this occurrence.

What Was The Impact Of The Six-Day War On The Economy?

The Six-Day War had a significant impact on the economy of the region and the world. The war stimulated the Israeli economy, leading to a substantial increase in aggregate demand, primarily due to military expenditures. This helped the Israeli economy recover from a recession and contributed to rapid economic growth, which was accompanied by higher defense spending and the expansion of Israel's military industries.

The war also increased international trade for Israel as it became more integrated into the global economy. On the other hand, the economic impact of the war was less severe for Syria, which had an extremely radical position during the conflict.

However, Egypt and Jordan faced economic challenges in the aftermath of the war, as they lost territories and had to rebuild their economies. The war also had a lasting impact on the economies of the neighboring countries, which had to adapt to the new political landscape and security threats.

2023 Israel - Hamas War

The 2023 Israel-Hamas war is an ongoing conflict between Israel and Hamas-led Palestinian militant groups, primarily taking place in and around the Gaza Strip since October 7, 2023. The war has resulted in a severe humanitarian crisis in Gaza, with widespread civilian casualties, including many children.

Both Israel and Hamas have been accused of war crimes due to the high number of civilian deaths. The conflict escalated following a surprise attack by Hamas-led Palestinian militants, which led to Israel declaring a state of war, marking the most significant military escalation in the region since the Yom Kippur War in 1973.

Tensions between Israel and Hamas had been rising prior to the outbreak of the war, with both parties on the brink of conflict. The war has also involved negotiations over the potential release of hostages from Gaza, with at least 136 hostages still being held, according to the Israel Defence Forces.

The conflict has seen the collapse of a truce, and Hamas has stated that there will be no negotiations on a new truce until Israel halts its attack and hands over prisoners.

What Were The Main Causes Of The 2023 Israel-Hamas War?

The main reasons for the 2023 war between Israel and Hamas are based on the long-running conflict between Israel and the Palestinians. Specific events set off the war. The mismatch of power, the lack of progress toward peace, and the idea of a Palestinian state have all contributed to the ongoing strife.

The fact that there are a lot of people living in the Gaza Strip and a lot of tunnels under the ground has made things even more difficult. The war has also gotten worse because of the ties between Hamas and Iran and because of the past of the conflict between Israel and the Palestinians.

The war has made it very hard for people to get medical care in Gaza. Most hospitals are closed, and the health system is partially broken.

Silhouette of Soldiers Walking
Silhouette of Soldiers Walking

What Is The Impact Of The 2023 Israel-Hamas War On The Economy?

The 2023 Israel-Hamas conflict has affected the Middle East and global economy. The war may weaken regional commerce, tighten financial conditions, raise energy costs, and lower consumer confidence in Europe. As Israel bombards Gaza, experts worry that the crisis might spread to the Middle East and involve Israel and Lebanon trading rockets.

Unless energy price pressures are managed, the clash might hurt eurozone economic growth and inflation. The battle may harm Egypt's, Lebanon's, and Jordan's economies. A peaceful, international law-based approach is needed to break the cycle of destruction and partial restoration.

The violent Israeli-Hamas conflict has killed hundreds of civilians and caused immense suffering on both sides. Most analysts think that if the war is confined, the damage to the global economy will be minimal. If other nations join the Israel-Hamas fight, it might cause a global recession.

The Hamas attack and Israel's retaliation are killing many and may cause a worldwide recession. The fight might destabilize the global economy like previous Middle East wars.

Middle East War - FAQs

How Did The Iran-Iraq War Impact The Middle East?

The Iran-Iraq war shifted the world's attention in the Middle East from the Arab-Israeli conflict to the Gulf region. It also took Iraq out of any possible organization of an "Eastern Front" in a war against Israel, indirectly contributing to Israel's security.

What Was The Reason For The Iraq War?

The main reason for the Iraq War was the belief that Iraq possessed weapons of mass destruction.

Were Biological Weapons Used During The Gulf War?

There is no evidence that biological weapons were used during the Gulf War.

Final Words

A history of conflicts and wars has marred the Middle East, each leaving a profound impact on the region. From the Gulf War, with its economic, environmental, and political consequences on Iraq, to the Iran-Iraq War, which caused widespread devastation and economic crises in both nations and the Iraq War, contributing to instability and the rise of ISIL, these conflicts have shaped the Middle East's trajectory.

The Middle East war, which is also known as the Six-Day War, had lasting economic effects, stimulating Israel's economy while presenting challenges for Egypt and Jordan. The ongoing 2023 Israel-Hamas War adds another layer of complexity, affecting the region's economy and creating a severe humanitarian crisis.

These wars underscore the importance of understanding their root causes and consequences. The intricate geopolitical, ideological, and economic factors involved highlight the need for diplomatic solutions and international cooperation to foster stability and address the complex challenges faced by the Middle East.

The impact of these conflicts extends beyond borders, affecting the global economy and geopolitical landscape and emphasizing the interconnectedness of nations in addressing regional crises.

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