Bangkok: The conflict in the Middle East remains a major risk factor for the global economy, especially as tensions between Iran, Israel, and their Western allies continue to escalate. Military movements in the region not only disrupt the geopolitical balance but also inevitably create ripple effects on the global economy.

According to Thai News Agency, Dr. Supavud Saichue pointed out that a factor the world is closely watching is the impact on the energy market, a vital lifeline of the global economy. The Middle East is a major center for oil production and export, and if the conflict escalates or affects energy transportation routes, it would cause oil and natural gas prices to rise rapidly.

Rising energy prices affect not only consuming countries but also have an impact on inflation, production costs, and the stability of the global economy on a broad scale, because energy is a fundamental cost in almost every sector of the economy, from transportation and industry to the service sector.

Another important point is the changing nature of warfare. Historically, military confrontations have typically occurred between large armies. Now, new technologies such as drones and low-cost, highly effective weapons are being used, capable of inflicting significant damage, while defensive systems cost many times more.

The cost-balance of war thus becomes a crucial factor that allows conflicts to drag on, even if one side has superior military power, as the other can still exert sustained pressure through strategies that use fewer resources.

From a global economic perspective, such uncertainty is causing volatility in financial markets, leading investors to seek safer assets. Meanwhile, rising energy prices may make it more difficult for many central banks to control inflation and manage economic growth.

Although Thailand is not directly involved in the conflict zone, it has deep connections to the global economy, particularly in energy and trade. If oil prices continue to rise, it could impact the cost of living, business costs, and the long-term recovery of the Thai economy.

Ultimately, the conflict in the Middle East is not just a geopolitical issue, but also a key variable that could shape the direction of the global economy in the future.