Israel-Hamas Conflict Creates Uncertainty, May Impact Oil, Congress, Ukraine Aid

Oil prices could increase in 2024 if the Israel-Hamas war disrupts potential deals with Saudi Arabia and Iran to boost oil production. This could hurt Biden's reelection chances.

The war may force Republicans in Congress to unify and resolve their leadership battle to avoid a government shutdown in November.

Congress may now be more likely to approve $24 billion in aid for Ukraine since Russia is an ally of Israel's enemy Iran.

The surprise Hamas attack makes the world seem more dangerous, weakening arguments against more defense spending.

Overall, the war creates market uncertainty even though its immediate economic impacts are limited. Its political and geopolitical ripple effects bear watching.