From Gaza to the Caribbean

Caribbean Issues
The Geopolitical Economist
12 min readOct 28, 2023

Gaza-Israel Conflict, Global Ripple Effect and Impact on the Caribbean

Caribbean affected by Gaza-Israel Conflict
Caribbean affected by Gaza-Israel Conflict — created with Image Creator

The Gaza-Israel conflict has been an enduring and deeply complex issue that continually captures the world’s attention. Recent escalations in violence and political maneuverings have not only resulted in loss of life and destruction but have also drawn several global powers into the fray, making it a focal point for international geopolitical tensions. This article aims to provide an analysis of the conflict, the involvement of key players like the United States, Iran, Russia, and China, and its implications for the global economy, with a special focus on what it means for the Caribbean region.

The Role of the United States and Israel:

Recent developments surrounding the Gaza-Israel conflict are rife with intrigue and speculation. There was explosion at a hospital in which both sides blame one another. The Israeli Defense Forces (IDF) have claimed that they are not responsible for the attack on a hospital in Gaza and that Iran provided support to Hamas for said attack in it’s own territory. The absence of direct evidence linking Iran to the attack has not deterred discussions within the United States and Israel about the possibility of taking aggressive action against Iran. Additionally, recordings of Israeli fighter pilots raising doubts about the origin of a missile that hit the hospital have added to the intrigue, be it propaganda or not.

There is growing concern that the United States may opt for a ground invasion of Gaza, a move that carries the potential for a wider war with Iran. The utilization of anti-ballistic missile defense systems like THAAD and Patriot air defense systems in the Gulf hints at preparations for an extended conflict.

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The Israel-Gaza Conflict:

Some argue that the Israel-Gaza conflict was a planned attack by Hamas, an assertion supported by the ample supplies and medical personnel they had at their disposal. Israel’s alleged failure to protect civilians during this crisis has raised questions of negligence or even complicity. Some even liken this incident to historical catalysts for war, such as Pearl Harbor and 9/11, suggesting that it may have been a last-ditch effort by Israeli Prime Minister Benjamin Netanyahu to shore up his political career.

From another perspective, the conflict has also provided an opportunity for Israel and the United States to consider taking military action against Iran. Russia’s involvement in Ukraine and China’s believed unreadiness to militarily support Iran in a potential conflict have left an opening for this line of thought.

The Escalation Plan:

In a different context, there is speculation surrounding a plan to escalate tensions with Iran, including the possibility of a surprise attack. This strategy seeks to draw Russia into a proxy war, potentially using Israel as a provocative agent. The timing of these actions appears to coincide with the Biden administration’s handling of the Ukraine situation, with the US rejecting a peace agreement signed between Ukraine and Russia.

By provoking Russia into a watered-down proxy war, the U.S. might be hoping to indirectly embroil Russia in a larger, more destructive conflict with Iran. This view may be supported by a recent attack where the U.S. sent fighter jets to bomb two places in eastern Syria that is alledgedly connected to an Iranian group called the Revolutionary Guard Corps, with full knowledge of Syria’s enduring alliance with Russia.

The Global Economic Implications:

Amidst these geopolitical chess moves, it’s essential to consider the impact on the global economy. The war-torn Middle East, already a crucial region for oil production and transportation, is susceptible to unrest that could influence oil prices and, subsequently, the world economy. The threat of a broader conflict and Iran’s involvement in the region have kept oil markets on edge.

The Gaza-Israel conflict have indirect but notable economic impacts on countries worldwide, most imminently on European countries. The Ukraine conflict has already contributed to increased energy prices, particularly natural gas, which is a critical import for many European nations. As energy prices rise, it has lead to increased costs for both consumers and businesses, leading to rising inflation and reduced economic growth with the shut down of businesses and loss of jobs. The Gaza-Israel conflict can exacerbate the situation, as it contributes to geopolitical instability in the Middle East, further affecting oil prices and potentially disrupting trade routes. While these conflicts alone may not trigger a recession or economic depression in European countries, they add to existing economic challenges and uncertainties, and prudent economic management is required to mitigate potential adverse effects.

What Does It Mean for the Caribbean Region?

So, what does this intricate web of international affairs mean for the Caribbean region? Geographically distant from the immediate conflict zone, the Caribbean nations might seem uninvolved, but they are not immune to the ripple effects of global instability.

The Caribbean countries rely heavily on oil imports for their energy needs. Any significant rise in oil prices caused by turmoil in the Middle East could have serious economic consequences for these nations. Higher energy costs can lead to increased living expenses, which can be particularly challenging for countries heavily dependent on tourism and the stability of their local economies.

Additionally, Caribbean nations are members of various international organizations and diplomatic networks. They need to navigate their stance in the context of regional politics and global alliances. As some Caribbean countries may have strong ties to the United States, while others have maintained historical relationships with countries like Iran, they must carefully balance their diplomacy to avoid negative consequences.

The Complex Dynamics of the Gaza-Israel Conflict:

Diving deeper into the Gaza-Israel conflict, it’s important to understand the intricate dynamics at play. This conflict is a multifaceted issue with deep historical, religious, and geopolitical roots. The region itself has been a contentious point for centuries, with numerous historical disputes that have often erupted into violence. The complexity of this conflict makes it challenging to find a sustainable solution.

The Ground Invasion Debate:

The concept of a ground invasion is a contentious topic. Israel’s reasoning for such an operation stems from the apparent failure of its intelligence system to locate the perpetrators of the attacks. The potential for a ground invasion raised significant concerns over civilian casualties and the looming humanitarian crisis. The complications surrounding the involvement of neighboring countries like Egypt and Jordan, with historical animosity towards Palestinians, further added layers of complexity to the situation.

The Role of Saudi Arabia:

Saudi Arabia, a regional power player, was facing its own internal debate. The Kingdom contemplated formalizing its relationship with Israel, a move that could significantly reshape the political landscape of the Middle East. The intricacies of this decision affected not only the regional balance of power but also the United States’ role in the Middle East.

The Global Power Players:

The involvement of global superpowers in the Gaza-Israel conflict is a critical aspect that often goes unnoticed. While the primary actors in the conflict are regional, the influence of the United States, China, Russia, and Iran can’t be underestimated.

China’s Complex Role:

China’s involvement in the Middle East conflict is not as straightforward as it may seem. Speculations arose that China supported Hamas by selling weapons and providing funding to Iran. This drew significant attention to China’s potential role in the Middle East conflict. However, it’s crucial to understand that China’s involvement is not solely driven by supporting Hamas but is entwined with its broader global strategy, especially as it aims to position itself as a major international player.

China’s Growing Interest in the Middle East:

While China might not be the first country that comes to mind when one thinks of the Gaza-Israel conflict, its economic interests in the Middle East are significant. The recent escalation of the situation and the possibility of the United States going after Iran’s oil have jolted Chinese strategists. It’s increasingly clear that China views the Middle East as vital to its energy security and global economic interests.

To underscore its commitment, China has deployed six warships to the Gulf region over the past week in an aim to balance the US’s aircraft carrier, its strike group already in the eastern Mediterranean, and a second aircraft carrier that has left the US and is heading that way, along with three Marine warships that are moving into the region. China’s deployment sends a powerful message to the world, particularly the United States, that it’s willing to protect its interests and secure key supply routes. The destinations of these warships are strategically chosen, with a strong focus on the Strait of Hormuz.

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The Strait of Hormuz: A Vital Oil Chokepoint:

China’s focus on the Strait of Hormuz is not without reason. This narrow waterway is a critical chokepoint for global oil transportation. Approximately 20 million barrels of oil pass through the strait daily, equivalent to 20% of global oil consumption. Any disruption in this region could lead to skyrocketing inflation and economic instability worldwide.

China, as a manufacturing giant and energy-dependent nation, relies heavily on Middle Eastern oil, including imports from Iran. If this energy supply were to be cut off due to escalating tensions, it would have severe repercussions for China’s economy. In August alone, China purchased about 1.5 million barrels of oil per day from Iran. While slightly less than its imports from Saudi Arabia, this remains a substantial portion of China’s energy needs.

Iran’s oil is of particular concern to China. Some American Senators have proposed targeting Iran’s oil fields if Iran intervenes further in the conflict. This move would effectively cut off the world’s supply of Iranian oil, with China being the largest buyer. Such actions would threaten China’s energy security and have severe economic consequences.

Moreover, Iran’s oil comes at a significant discount, which translates to substantial cost savings for China. Iranian crude sells at a $10 discount, double that of Russian oil. China is saving approximately $50 million a day or over $5 billion annually by purchasing Iranian oil at this rate. Thus, it’s not surprising that China is taking steps to protect its interests in the region.

China’s Middle East Strategy:

China’s approach to the Middle East differs markedly from that of the United States. While the United States flexes its military might and warns regional actors not to interfere, China is actively working to broker peace and promote a ceasefire. This marks a strategic move to build its economic interests in the Gulf region.

China’s Special Envoy, Zun, made commitments to do whatever necessary to achieve a ceasefire and promote peace during his recent tour in the Middle East. This approach underscores China’s belief that violence begets more violence, leading to a vicious cycle of revenge. By advocating for peace, China is positioning itself as a responsible global player while counterbalancing the United States’ aggressive stance in the region.

China’s efforts to broker peace are a significant diplomatic move. It places China in a favorable light as a promoter of peace while weakening America’s influence in the Middle East. The longer the ceasefire is delayed, the more trust erodes in the United States as a mediator, potentially pushing Middle Eastern nations to seek alternative allies.

A telling sign of the shifting dynamics is China’s Envoy’s plan to visit Saudi Arabia and Jordan as part of his Middle East trip. If Jordan accepts this visit, it would be a diplomatic coup for China, as Jordan has signaled its dissatisfaction with U.S. policy in the past. This would further bolster China’s standing in the region and deal a blow to U.S. influence.

Russia’s Strategic Objectives:

The United States’ actions in the Middle East is leading to self-isolation and reduced influence in the region. This has created a power vacuum that regional powers, including Russia, Iran, Saudi Arabia, the UAE, and Turkey, are looking to fill.

Russia’s ongoing conflict with Ukraine has had significant implications for the Middle East. It has exposed the complexities of the region’s relations with global powers. Russia is a key player in this evolving geopolitical landscape.

Middle East countries adopted a cautious and balanced approach to the Russia-Ukraine war. They avoided taking a strong stance against Russia to safeguard their common interests with Moscow. This stance reflects Russia’s ability to maintain diplomatic relations with key Middle Eastern nations.

The Russia-Ukraine war has contributed to economic divisions within the Middle East with some Gulf countries profitting from oil and gas exports, others such as Egypt, Jordan, Tunisia, and Lebanon, have been grappling with economic crises. However, Russia has seen a growing economic cooperation trend with some Middle Eastern countries, notably Turkey and Gulf Cooperation Council (GCC) nations. This economic engagement contributes to Russia’s influence and presence in the region.

Russia, a long-standing ally of Syria has played a pivotal role in the Gaza-Israel conflict, both overtly and covertly. While headlines about the Ukraine conflict have obscured its involvement in the Middle East, Russia’s strategic objectives and its interests in the region are undeniably significant.

Russia’s backing of Syria and its involvement in the Middle East extend beyond what meets the eye. It is an intricate dance that impacts the geopolitical chessboard in the region. Understanding Russia’s role in the conflict is essential to comprehend the broader dynamics at play.

Iran’s Complex Influence:

Iran’s role in the conflict is multifaceted, as it supports various groups hostile to Israel. The Gaza-Israel conflict serves as a microcosm of the broader regional power struggle between Iran and its regional rivals. Iran’s influence stretches to Lebanon through Hezbollah, and this interconnected web further complicates the situation. The potential escalation of the conflict, including a substantial attack by Hezbollah against Israel, could prompt an Iranian intervention, raising the cost of oil and affecting the global economy.

Global Economic Implications:

The Gaza-Israel conflict reverberates far beyond the borders of the Middle East. It has global economic implications that ripple across industries and economies, causing nations to reassess their positions and strategies.

Energy and Oil Markets:

Traditionally, Middle East conflicts have raised concerns about oil shocks and energy price increases. However, the dynamics of the energy market have evolved. Israel and Palestine, despite their proximity to oil-rich nations, are no longer the significant players in global energy policy. Instead, it is the responses of key oil producers like Saudi Arabia that drive oil prices.

The global energy landscape is shifting, and the region’s conflicts have only a minor impact on the world’s largest oil producer. Understanding the interplay between global oil markets and Middle East conflicts is essential to gauge the impact on the Caribbean and other regions.

Economic Impact on the Caribbean Region:

The Caribbean, though distant from the Gaza-Israel conflict geographically, is not immune to its economic reverberations. The region’s economies are intricately connected to the global economic system, making them susceptible to fluctuations driven by global instability.

The Caribbean nations heavily rely on international trade and tourism. Economic disruptions, such as oil price spikes, can lead to increased costs, affecting their tourism industry and overall economic stability. These effects extend to the Caribbean diaspora in the United States, which plays a significant role in the region’s remittances and economic well-being.

Geopolitical Implications for the Caribbean:

The Caribbean has historically been a battleground for geopolitical influence, often due to its strategic location. While the Gaza-Israel conflict may seem worlds apart, its connection to global superpowers adds an additional layer of complexity to the region’s geopolitical landscape.

The involvement of the United States, China, and Russia, each with its own interests and alliances, can shape the dynamics of the Caribbean. The region may become a playing field for these global powers, impacting its political and economic stability. As global superpowers engage in complex power struggles, the Caribbean may need to reassess its security measures and partnerships to protect its interests.

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In summary, the Gaza-Israel conflict, while deeply rooted in regional disputes, has far-reaching implications for the global landscape. The involvement of global superpowers like the United States, China, Russia, and Iran has added layers of complexity to an already intricate conflict. For the Caribbean region, thousands of miles away, these implications are not abstract. They affect the economies, geopolitics, and security of nations that have traditionally played a role on the periphery of global events. As the conflict continues to evolve, the Caribbean will need to navigate these turbulent waters, making decisions that safeguard its interests while staying true to its principles and values.

The Gaza-Israel conflict is a stark reminder that in our interconnected world, even the most distant shores can feel the ripples of instability and conflict. It is a testament to the complexity of our global landscape, where a seemingly localized conflict can have consequences far beyond its origins.

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Caribbean Issues
The Geopolitical Economist

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