To "those who would seek to widen the conflict [...], our advice is 'don't do it.' We preserve our right to defend ourselves and we will not hesitate to act accordingly," Lloyd Austin, the US Secretary of Defense, warned last Sunday. Proof, if any were needed, of the risks of a conflagration in the Middle East. And the war between Israel and Hamas could well ignite this powder keg. Especially since the second incursion by the Tsahel into Gaza on Thursday night, followed by the intensification of the bombardment since Friday night, suggests that the conflict is entering a new phase.
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There are a range of possible scenarios. In some, the damage would be tragic, but limited. In others, key dominoes would fall and set off a chain reaction leading to a regional conflagration or even a worse situation," Michael Everyn, chief strategy officer at international financial institution Rabobank, told ABC News Australia. The escalation of the conflict, including the frank and direct involvement of Hezbollah, Iran or the United States, could have significant consequences for global trade.
To the point that...
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