In 1917, you might have come across a 67-word letter that changed the face of the Palestinian region forever. This letter was authored by Britain’s then foreign secretary Arthur Balfour, who made a significant pledge within it—“the establishment in Palestine of a national home for the Jewish people.”

Essentially, Britain pledged to aid Jews fleeing persecution from various parts of Europe and help them settle in Palestine.

But, you might be wondering, how could Britain enforce such a diktat? Well, the British had colonized the Palestinian territory and had complete control over everything. However, the 94% Arab population living in Palestine was furious, feeling that their land was being forcibly taken away. This led to growing tensions and the first conflicts between Arabs and Jews.

Fast forward to 1947

Britain relinquished control of the territory. It was then the United Nations’ turn to step in. The United Nations proposed a plan: “There will be two states—Palestine and Israel. And Jerusalem will be treated as an international city.”

This might sound reasonable, but the Arabs were unhappy because a larger portion of the land was allotted to the Jews, leading to a war. By the end of it, Israel controlled even more territory, with Egypt taking control of Gaza and Jordan occupying the West Bank.

But it didn’t end there. In 1967, another Arab-Israeli war erupted, and Israel managed to assert its authority over Gaza and the West Bank as well. Palestine had almost disappeared.

The Palestinian people saw this as an illegal occupation, and some resorted to diplomacy while others turned to violence. In the 1980s, a violent group called Hamas dominated the headlines, waging a proxy war against Israel. Several countries tried to broker a peace deal between Israel and Palestine to end the conflict.

In the 1990s, Israel finally yielded to international pressure and gave a small degree of control over the West Bank and Gaza to an interim Palestinian government. However, intermittent conflicts continued as the Arabs still claimed their land.

When Hamas took control of Gaza in 2006, Israel imposed strict controls, isolating Gaza from the world and leaving 2 million people in an area of 365 square kilometers without free movement.

The region’s economy

As a result, Gaza’s economy collapsed, with the world’s highest unemployment rate and more than 50% of its population living below the poverty line. Gaza’s contribution to the Palestinian economy dropped significantly.

This brings us to today. In recent years, many in the West have suggested an “economic peace” solution. Some believe that the region holds vast oil and natural gas fields in disputed territories worth an estimated US $524 billion.

The U.S. has been working on deals between Israel and several Arab nations. In 2020, the Abraham Accords were signed by the UAE, Bahrain, Morocco, and Sudan, normalizing relations with Israel. These deals aimed to benefit everyone, creating new jobs and economic prosperity.

Despite these developments, Palestine’s concerns seemed to have been sidelined, with no significant discussions about the region or its people. The situation continued until the recent brutal attacks last weekend.

To sum it up

One has to ask, will this war have a spillover effect on the world? While Israel and Palestine aren’t major oil producers, oil prices have already risen, partly due to concerns about Iran’s involvement.

Iran, a significant oil producer, is close to the Strait of Hormuz, a crucial passage for oil exports. If militants target it for leverage, oil prices could face further shocks.

For now, one can only hope for a peaceful resolution to end the conflict and spare innocent civilians from the horrors of mindless attacks.