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Palestinians in the Gaza Strip are marking the Muslim holiday of Eid al-Fitr, the first since the so-called ceasefire began, amid widespread suffering and destruction following two years of Israeli genocide.
Across the enclave, Palestinians performed Eid prayers amid the rubble, in a powerful act of steadfastness and resilience, and children tried to find moments of joy.
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In an ESCWA report titled “Conflict and its shockwaves: escalation of a crisis in the Arab region” and released on 19 March, it points out if the US-Israel-Iran war continues for one month it would causes have losses for the Arab region amounting to nearly $150 billion, or 3.7% of regional GDP.
ESCWA, a major UN organization, warns that the conflict has causes much economic losses with preliminary estimates of about $63 billion in just two two weeks, pointing out the shock is being transmitted through energy markets, trade routes, aviation networks and financial systems.
It added shipping through the Strait of Hormuz has fallen by 97%, with disrupted cargo flows valued at about $2.4 billion a day and cumulative trade losses estimated at around $30 billion over two weeks. Between 28 February and 12 March, almost 19,000 flights were cancelled across nine major regional airports, generating an estimated $1.9 billion in airline revenue losses.
“The findings show that the economic effects of the conflict are materialising quickly and across multiple channels at once,” said Mourad Wahba, Executive Secretary of ESCWA. “What begins as a security escalation is being transmitted into the regional economy through trade, energy, transport and finance, with direct consequences for growth, fiscal stability and humanitarian pressures.”
ESCWA said the region entered the crisis with limited room to absorb a prolonged shock. Even before the latest escalation, around 210 million people, or 43% of the region’s population, were living in conflict-affected settings, including 82 million people in need of humanitarian assistance. In 2025, GCC countries provided about $4.4 billion in humanitarian aid, accounting for roughly 43% of total aid received by conflict-affected countries in the region.
The burden is likely to fall particularly heavily on energy-importing economies. At an oil price of $100 a barrel, the additional annual import bill for Egypt, Lebanon and Tunisia would rise by about $6.8 billion compared with 2026 budget assumptions, adding to fiscal pressure in countries already facing constrained public finances.
Lebanon is facing some of the gravest immediate consequences. ESCWA notes that recent escalation that erupted on 2 March took violence by Israel at a new and more intense levels. If escalating strikes continue, economic losses could rise sharply as attacks increasingly disrupt infrastructure, trade and essential services. These shocks hit an economy that has already contracted by nearly 40% since 2019. The latest escalation has also caused severe humanitarian strain, with 634 people killed as of 11 March and nearly one million displaced.
“The concern is not only the scale of the immediate losses, but the way in which they interact with pre-existing structural vulnerabilities in the region,” Wahba added. “For countries with limited fiscal space, high import dependence or significant humanitarian pressures, a prolonged conflict could exceed their capacity to absorb further shocks, with serious implications for economic stability, social cohesion, and humanitarian condition.”
The ESCWA brief assesses the impact of the conflict through a scenario-based framework covering macroeconomic losses, energy markets, maritime trade, aviation disruptions, financial shocks and Lebanon’s direct exposure to the conflict.
About ESCWA: One of five United Nations regional commissions, ESCWA supports inclusive and sustainable economic and social development in Arab States and works on enhancing regional integration.
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Iranian President Masoud Pezeshkian said Monday that Iran did not start the current war with the US and Israel, defending his country’s right to respond to attacks by Washington and Tel Aviv against Tehran, as fighting between the warring rivals continues unabated.
In a statement on the US social media company X, Pezeshkian said he spoke over the phone with French President Emmanuel Macron.
“I emphasized that Iran did not begin this atrocious war. Defending against invasion is a natural right, in which we are good at,” he said.
“Using the American bases against Iran in the region, with the purpose of disturbing our relations with our neighbors, should be stopped.”
The Iranian president said regional peace and stability cannot be achieved while disregarding US-Israeli attacks on Iran.
“The Islamic Republic of Iran will not surrender to bullies,” Pezeshkian said.
“We expect the global community to condemn this invasion and convince invaders to respect international laws. Commencing a war in order to conquer, based on false information, is a medieval act in 21st century,” according to Anadolu.
Pezeshkian described calls for ending the war as “meaningless, until we ensure there will be no more attacks in our land in the future.”
Regional escalation has raged since the US and Israel launched a joint offensive on Iran since Feb. 28, killing so far around 1,200 people, including then-Supreme Leader Ali Khamenei.
Tehran has retaliated with drone and missile strikes targeting Israel, along with Jordan, Iraq, and Gulf countries, which it says are targeting “US military assets.” Some of these attacks have caused casualties and damage to civilian infrastructure, including airports, ports and buildings.
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Israeli occupation authorities continued their closure of the Al-Aqsa Mosque compound on Sunday, marking the 16th consecutive day of closure. As the 27th night of Ramadan approached, they transformed the area surrounding the mosque into a military zone.
The Palestinian Jerusalem Governorate stated that occupation forces had turned the Old City of Jerusalem into a military barracks, deploying hundreds of soldiers around it.
It added hundreds of Jerusalemites performed the Isha and Taraweeh prayers in the Bab al-Sahira and Bab al-Amud areas and in the streets, as the Old City and the Al-Aqsa Mosque remained closed “amid a siege by Israeli forces.”
These Israeli reinforcements coincided with calls on social media to break the siege of the Al-Aqsa Mosque and observe Laylat al-Qadr (Night of Power) within its precincts or wherever possible.
Since the start of the US-Israeli attack on Iran on February 28, the occupation authorities have closed the Al-Aqsa Mosque under the pretext of declaring a state of emergency and preventing gatherings.
Palestinians observe the 27th night of Ramadan (Laylat al-Qadr) by observing i’tikaf (seclusion for worship) in mosques, praying, supplicating, and reciting the Quran until dawn. Last year, approximately 180,000 people observed it at Al-Aqsa Mosque.
According to the Jerusalem Governorate, dozens of Jerusalemites performed the Isha and Taraweeh prayers near the Damascus Gate (Bab al-Sahira) on the northern side of the Old City of Jerusalem, amidst heavy military reinforcements and a large deployment of occupation forces.
The Wadi Hilweh Information Center for Human Rights stated that occupation forces erected checkpoints, stopped those entering the Old City, and prevented non-residents from entering.
The center noted the collapse of the Old City’s markets, which appear almost deserted, with most shops closed due to Israeli restrictions, during a season that merchants eagerly anticipate each year.
The Arab League, in a statement, condemned “in the strongest terms” the continued closure of Al-Aqsa Mosque and the prevention of prayers and religious rituals there, especially during the holy month of Ramadan and its last ten nights.
The university deemed this “provocative measure a flagrant violation of international law, international humanitarian law, and the existing legal and historical status quo at the Al-Aqsa Mosque/Haram al-Sharif, an unprecedented provocation of the feelings of two billion Muslims worldwide, and an undermining of freedom of worship and unrestricted access to places of worship.”
It emphasized that “Israel, the occupying power, has no sovereignty over the Palestinian territory occupied in 1967, including the occupied city of Jerusalem and its Islamic and Christian holy sites.”
It called upon the international community, including the Security Council, to assume its responsibilities and adopt a firm international stance that compels Israel, as the occupying power, to cease its violations and practices, lift all restrictions imposed on Palestinian access to Jerusalem, and respect freedom of worship. J024
