Financial Expert Calls for Prayer as Hamas War Could Spike Inflation: 'Put Our Faith in the Lord'
Any extended war between Israel and Hamas would likely have far-reaching implications beyond the Middle East—on global markets and consumer pocketbooks.
As a major player in the global economy, the United States is not immune to the economic ripples caused by geopolitical conflicts. The stock market has already experienced fluctuations as investors react to uncertainty surrounding the Israel-Hamas war.
Of primary concern is the global oil market. As fighting escalates, supply disruptions could be followed by a spike in oil prices.
Brandon Pizzurro is the incoming president of Guidestone Funds, America's largest faith-based mutual fund company. He believes consumers may experience higher gasoline prices in the days ahead.
"When you first have one of these shock events as you might call them, people must initially first digest that and that first place-through, or bleed-through is initially going to be in the oil prices and that's where people are going to initially feel that pain," Pizzurro explained. "And one of the first things people think about when they say, 'is my cost of living going to go up?' And pain at the pump is certainly something we're going to have to grapple with for a little bit of time here."
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Any direct Iranian intervention could lead to blockades and supply bottlenecks in the oil-rich Persian Gulf and Strait of Hormuz. Less oil availability would directly affect transportation and production, potentially leading to increased prices for goods and services. In turn, a likely jump in inflation could hamper consumers' purchasing power.
"Wars in general are inflationary which really goes against this disinflationary environment that the Fed and other global central banks are looking for," said Pizzurro. "So, you see that inflation rise because the cost of production. Oil certainly is an inflationary measure."
This week, Wall Street investors nervously watching Middle East developments found a bright spot: defense-related stock prices climbed after the Pentagon sent advanced weapons to Israel.
The bottom line? What happens in Gaza doesn't stay in Gaza. The war is a complex web that extends elsewhere. The United States, with its interconnected economy, is not immune to the repercussions.
And with a ground war now almost certain, global markets are likely to remain volatile.
Pizzurro urges people not to panic and instead respond with prayer.
"Any time of distress like this, the only way to turn is to God and to think what is at play. God of course knows exactly what's at play and it's for us to rely on Him and put our faith in the Lord. The Lord also calls us to be bold and brave in our faith and standing pat with those who we ally ourselves with," he insisted. "So, praying for the people, praying for Israel, praying for a peaceful resolution, is certainly what we need to do but not being fearful."
CBN NEWS COVERAGE OF THE WAR AGAINST HAMAS:
Netanyahu Warns 'Every Member of Hamas Is a Dead Man' as New Atrocities Revealed, 1,300 Dead
'It Always Comes Back to Jerusalem': End Times Prophecy and the War Against Hamas
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