CNI News
10 October 2023
The current war between Israel and the Hamas militant group has affected the global gold and oil prices and could impact indirectly on the prices of gold and fuel in Myanmar, commented businessmen.
The Hamas group attacked Israel by several thousands of rockets and hundreds of people were killed as well as hundreds of people were arrested on 7 October 2023. After that, Israel declared war on the Hamas group and Israel is carrying out intense airstrikes on Hamas targets and then the war between Israel and Hamas has escalated.
As the war could lead to a large-scale war in the Middle East, it could indirectly affect Myanmar. So, organizations concerned should make preparations about how to cope with a possibility that the prices of gold and fuel could go up, suggested economic analysts.
A fuel station
"Israel-Palestine war has nothing to do with Myanmar. But many wars in Middle East are not easy to end because the United States is on Israel's side. On the side of Hamas are the Arab countries and Iran. Iran supports Hamas a lot including weapons and ammunition. In the past, the US imposed sanction on Iran relating to petroleum. But the sanction was lifted this year. If the war became larger, the US might impose on Iran again. If it hurt the Iran's production of petroleum, the oil price may go up possibly in December when the rain has stopped in Myanmar and gold digging will restart. If the fuel price go up when gold digging activities restarts, the gold price will also go up. So, the war may indirectly affect Myanmar. If the price of fuel goes up, the cost of production will increase. And then commodity prices will also go up. How to cope with it depends on the government." said Ko Nay Khant, a dollar and gold market analyst, to CNI News.
Currently, the world gold price has increased and Octane 92 is in short supply at many gas stations in Myanmar. If the war took long, many countries including Iran and Turkey probably would take side with Palestine while the US would take side with Israel.
Israel army is making military preparations to fight against Hamas
After that, the US probably will impose sanction on Iran that produces crude oil, said experts. If such sanctions were imposed, world oil prices would rise and it could impact on the prices of fuel in Myanmar.
By reason of Russia-Ukraine war, Myanmar businessmen and traders raised the commodity prices. At present, not to make the commodity prices higher by reason of Israel-Palestine war, Myanmar government needs to deal effectively with, pointed out some businessmen.
" The government needs to take action effectively to deal with that issue. The main thing is that traders are making speculations. Whenever there is a big political or economic conflict somewhere in the world, it will impact on Myanmar, that Myanmar entrepreneurs have firmly deemed. It is a bad sign for the Myanmar people. Those who are performing to make the prices higher by reason of a big conflict somewhere in the world should be taken action against effectively. If the government arrests about five people doing like that, any more of people won't dare to do that, I think." said U Aung Pyae Sone, a businessman to CNI News.
The Commodity Price Stabilization Committee and the Foreign Exchange Supervisory Committee monitor the entrepreneurs and traders who might make speculations and if possible, actions should be taken.
Moreover, policies in relation to imports and exports should be flexible depending on conditions, said economists.
