How October 7 Reshaped the Middle East’s Economy

The 1,096 days since October 7, 2023, have redrawn the Middle East’s economic landscape, with the effects of the war that began in Gaza reaching far beyond the battlefield.

Over three years, the conflict’s repercussions have spread across tourism, trade, investment, energy and transport. Its widening geographical reach has turned a war centred on Gaza into a broader economic challenge for the region.

The costs have not been shared equally. Economies across the Middle East have faced differing levels of exposure as the conflict has gradually extended to new arenas, leaving the region without a single, uniform economic experience.

The range of sectors affected underscores how closely the region’s economic fortunes are tied to security. The fallout encompasses both the movement of people and goods and the investment on which future growth depends.

Three years on, the economic consequences form a central part of the conflict’s regional impact. What began in Gaza has reshaped the conditions under which the Middle East trades, attracts visitors and investment, and moves energy and goods.