HELSINKI, March 13 (Xinhua) -- The ongoing conflict in the Middle East is being felt far beyond the battlefield, weighing on global stock markets, oil and gas futures, and risk premiums, according to an editorial published Friday by Finnish daily Helsingin Sanomat (HS).
The conflict is already taking a heavy toll on the global economy. Oil prices have hovered around 100 U.S. dollars per barrel, stock markets have declined, and natural gas prices have climbed sharply. The International Energy Agency has urged countries to release oil from emergency reserves to help stabilize the market, the editorial said.
"Uncertainty is a poison to the economy," the editorial wrote, noting that the impact is visible in airline ticket prices, fuel costs, mortgage interest rates and retirement savings. Business investment is being delayed, while consumer confidence is weakening.
The editorial also said the conflict has disrupted daily life and air traffic in regional hubs such as Dubai, Abu Dhabi and Doha, key gateways for travel between Europe, Asia and Africa. It warned that the consequences for the rest of the world could be severe, particularly if oil shipments through the Strait of Hormuz are blocked as a result of the conflict.
The conflict has also highlighted a growing divergence of interests between the United States and Europe, the editorial said.
"The U.S. started the war without consulting its European allies, and the superpower can fight the war without Europe. However, Europe will suffer, and the consequences of the war will last for years," it said.
Political pressure is also building in Washington, as economic instability and rising prices begin to erode public confidence and narrow the current U.S. administration's room for maneuver, the editorial noted.
Also on Friday, Finnish business daily Kauppalehti said Europe, including countries such as Finland, cannot afford the economic costs brought by the conflict. It warned that Finland's prospects for stronger economic growth are now under threat and called for preparations for slower growth alongside faster efforts to reduce dependence on imported energy.
