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50 years ago when the Middle East was at war, oil prices skyrocketed. But it probably won't happen this time.

  • Written by Jamie Cross, Assistant Professor of Econometrics & Statistics, Melbourne Business School

Global oil prices jumped after Israel declared war on Hamas in response to its unexpected attack on Israel on Saturday, the eve of the 50th anniversary of the 1973 Arab-Israeli War.

Back then, between late 1973 and early 1974, the world oil price almost quadrupled after the United States offered financial support to Israel in the...

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