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Israel-Hamas War: ‘Outraged and deeply saddened’ over Al Ahli Arab hospital blast in Gaza, says Joe Biden
The White House has issued a statement on behalf of US President Joe Biden, expressing his strong outrage and deep sorrow regarding the recent explosion that struck a hospital in Gaza. The President, in the statement, conveyed his shock and sadness over the tragedy, stating, “I am deeply saddened and outraged by the explosion at the Al Ahli Arab hospital in Gaza and the devastating loss of life it caused. Upon learning of this tragic incident, I immediately spoke with King Abdullah II of Jordan and Prime Minister Netanyahu of Israel, and I have instructed my national security team to gather all available information about the situation.”
Biden emphasized the United States’ unwavering commitment to the protection of civilian lives during times of conflict and expressed condolences for the patients, medical personnel, and innocent individuals who lost their lives or were injured in the incident.
Know what Joe Biden tweeted early morning
Furthermore, the statement revealed that President Biden has postponed his planned visit to Jordan in light of the explosion at the Gaza hospital that claimed the lives of hundreds of people. Initially, the President was scheduled to visit Jordan after his trip to Israel, where he intended to address the ongoing conflict with Hamas. However, after consulting with King Abdullah II of Jordan and considering the mourning period announced by President Abbas of the Palestinian Authority, Biden decided to delay his visit to Jordan and the planned meetings with these leaders, as well as President Sisi of Egypt.
President Biden is set to arrive in Israel to show support and engage in consultations with senior Israeli officials to discuss the next steps in response to the terrorist attack by Hamas. Meanwhile, Palestinian Authority President Mahmoud Abbas canceled his planned meeting with Biden, opting to return to Ramallah, the administrative center of the West Bank, following the Israeli strike on the Gaza hospital that resulted in significant casualties.
The World Health Organization strongly condemned the deadly attack on the Gaza hospital and called for the immediate protection of civilians and healthcare facilities in the region.
The background context of the conflict was described, including Israel’s initial response to a sudden attack by Hamas, leading to casualties and abductions, followed by retaliatory airstrikes, loss of lives in Palestine, and the imposition of a blockade on Gaza. Additionally, Israel had deployed a large number of troops along the border in preparation for a potential ground offensive.
India’s Trade With Israel
India’s trade with Israel, the primary exports include diamonds (valued at approximately $1.4 billion), refined petroleum (about $582 million) and rice ($54.0 million). India accounts for 4.6 per cent of the total trade with Israel. “Gems and jewellery industry may witness some disruption in terms of diamond exports to Israel,
The Indian IT industry has a limited presence in Israel, largely focused on innovation partnerships and R&D. Companies like TCS set up base in Israel in 2005 and currently have 1,100 employees based out of Jerusalem. Recently, TCS and Jaguar Land Rover (JLR) introduced an Open Innovation Program in the region. Amongst other prominent IT companies, HCLTech has two offices in Israel. Tech Mahindra also recently tied up with Israel-based defence electronics firm ELTA Systems. Wipro has 80 employees (all locals) working at its Israel unit. “Overall, the safety of employees is of paramount interest for all IT majors, while from a business perspective, the impact is likely to be negligible.
On the other hand, many domestic pharmaceutical companies have tie-ups with Israeli companies for the development of drugs. Sun Pharma owns a majority stake in Israel’s Taro Pharma and the impact as of now seems to be negligible.
Impact of Israel-Hamas War on Indian Markets?
The Ongoing Conflict Between Israel and Hamas: Potential Impacts on the Indian Stock Market
The ongoing war between Israel and Hamas, resulting in a tragic toll of over 3,500 deaths, is a matter of significant concern for global market participants. Analysts on Dalal Street, the financial hub of India, believe that this conflict has the potential to introduce volatility to the domestic equity market in the medium term. Moreover, it may have wide-ranging effects on various sectors and companies if the situation is not swiftly resolved.
One specific concern pertains to the potential delay in the planned implementation of the economic corridor, a major infrastructure project. Several domestic railway players, including RITES and RVNL, were set to secure substantial contracts for the development of this massive rail infrastructure. If there is a significant delay in the execution of this project, it could potentially impact the earnings growth prospects for these railway players in the medium term.
Upstream oil companies like ONGC and Oil India have benefited from the surge in crude oil prices. Conversely, oil marketing companies (OMCs) such as HPCL, BPCL, and IOC have historically experienced an inverse relationship between crude oil prices and their profitability and stock prices. Any significant increase in crude oil prices tends to lead to corrections in the stock prices of OMCs. Additionally, elevated crude oil prices can fuel inflationary pressures on sectors like cement, paints, airlines, and chemicals.
In the defense sector, analysts anticipate that due to the ongoing conflicts involving Russia-Ukraine and Hamas-Israel, defense budgets worldwide are likely to receive increased allocations. This could be beneficial for domestic defense companies such as HAL, BEL, Mazagon Dock, Cochin Shipyard, L&T, and Bharat Forge in the long term. As an example, the stock price of the US-based defense major Lockheed Martin has witnessed a notable increase of over 10 percent since the onset of the conflict between Israel and Hamas.
The travel and tourism sector may also face challenges. If the situation does not normalize in the near future, the travel and tourism industry could experience adverse effects in the short to medium term. International airline businesses may be impacted due to travel-related restrictions and service suspensions.
The ongoing conflict has made investors cautious, leading to a shift towards safe-haven assets. This has had a global impact on equity markets, with US stock futures and Asian markets trading lower. Safe-haven assets, such as gold, have seen price increases, with both spot gold and US gold futures experiencing notable gains.