Yellen highlights global economic risks from Israel-Gaza conflict at IMF and World Bank meetings

Treasury Secretary Janet Yellen highlighted the potential global economic risks arising from the ongoing Israel-Gaza conflict during the annual International Monetary Fund and World Bank meetings held in Marrakesh, Morocco on Wednesday. Yellen expressed the U.S.’s intention to intensify sanctions against entities such as Hamas, Iran, and Hezbollah, while maintaining a firm stance on existing Iranian sanctions.

In a significant turn of events, Yellen hinted at the possibility of reversing a previous decision that allowed the unfreezing of $6 billion in Iranian oil revenue. This fund, transferred from South Korea to a Qatari bank to be used for humanitarian aid, could be frozen again if Iran’s involvement in the Hamas attack is substantiated.

Despite these geopolitical “shocks” and a decelerating global economic recovery, Yellen expressed her optimism about maneuvering the U.S economy towards a soft landing amidst these challenges. The Treasury Secretary’s comments underscored the complex interplay between geopolitical events and economic policy, as well as the U.S.’s continued commitment to mitigating potential financial risks associated with international conflicts.

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