As the situation in the Middle East becomes more turbulent, where will the situation between Palestine and Israel go?
Review of this Palestinian-Israeli conflict
The Palestinian-Israeli conflict occurred on less than 30,000 square kilometers of land. The fierce battle for more than 70 years after the war was actually a back and forth between two places the size of Beijing. Today, approximately 22,000 square kilometers of prime land are in Israeli hands, while the remaining 6,000 square kilometers are in Palestinian hands, mainly including the West Bank controlled by Fatah and the Gaza area controlled by Hamas. Hamas is an organization more unwilling to compromise than Fatah, and this conflict mainly occurs between Israel and Hamas.
What is the impact on oil prices?
Throughout the history of crude oil prices, only when Saudi Arabia, Iran, and Iraq in the Middle East are involved are the "core variables" that affect oil prices. The United Arab Emirates, Kuwait, and Libya are also "sub-core" and the conflict is limited to Palestine and Israel. If so, the direct impact will be limited (at most it will be a correction of the previous month's decline).
Speculations on U.S. plans
The original plan of the United States was to take this opportunity to promote the "Mutual Defense Treaty between the United States and Saudi Arabia." As long as Saudi Arabia is willing to establish diplomatic relations with Israel and favor the United States strategically, the United States is willing to provide Saudi Arabia with the same "security treaty" as Japan to protect Saudi Arabia.
In this way, Saudi Arabia may cooperate with the United States in expanding crude oil production, thus suppressing global inflation. But this plan itself also has difficulties. The Saudi royal family would definitely prefer the Republican Party and Trump, who prefer traditional energy, to come to power. At this time, a conflict happened to put the reconciliation on hold.
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