UNCW Professor discusses the economy in relation to conflict in the Middle East

NEW HANOVER COUNTY, NC (WWAY) — With the growing unrest in the Middle East, some are wondering what kind of financial impact the conflict will have here at home. 

Mouhcine Guettabi is an Associate Professor of Economics at UNCW. He said predictability caused by the unrest will have an effect on our economy.  

Guettabi said the price of oil is one of the biggest concerns. He said if there is an increase in prices, it could worsen inflation, which would likely force the Federal Reserve to keep interest rates higher. 

“The situation we find ourselves in right now is we just don’t know how bad this conflict potentially gets. Uncertainty is going to put upward pressure on prices in general,” Guettabi said. 

He said what we are seeing right now can be compared to what we saw at the beginning of the Russia-Ukraine War. He described it as a waiting game to see what will happen next.