Apr 01 (Jowhar)-The US and Israeli attacks on Iran and their impact on the Middle East have severely damaged Arab countries, with millions of people expected to be pushed into poverty, according to the United Nations.
A report by the United Nations Development Programme (UNDP) said the region’s gross domestic product (GDP) is estimated to fall by an estimated 3.7 to 6 percent in a month of war, equivalent to a loss of $120 billion to $194 billion.
Abdalla Al Dardari, the UN assistant secretary-general and director of the UNDP office for the Arab States, said 3.7 million jobs would be lost and nearly four million people could be pushed into poverty. He noted that the war had exposed “the fragility of Arab economies”.
The report was based on a forecast of a “short but very serious four-week conflict”, indicating that the impact of the war — in which Iran attacked energy infrastructure in the Gulf and disrupted oil and gas exports through the Strait of Hormuz — could increase if the conflict drags on.
The report also came as Brent crude prices rose 4.7 percent to more than $118 a barrel, saying that “the threat to strategic sea lanes” had immediate repercussions that would impact inflation, trade, and global supply chains, potentially damaging the livelihoods of economically interconnected countries in the Middle East.
It added that the increase in poverty was particularly pronounced in vulnerable countries such as Sudan and Yemen, where pre-existing vulnerabilities are high and economic crises are directly affecting people’s lives.
The report also noted that Lebanon has been particularly affected, following its involvement in the war, with Hezbollah attacking Israel in response to the US-Israeli assassination of Iran’s Supreme Leader Ayatollah Ali Khamenei on February 28. Ongoing airstrikes and evacuation orders have already caused extensive damage to homes, transport infrastructure, and public services, as well as mass displacement.
