On Thursday, International Monetary Fund managing director Kristalina Georgieva called the escalation of conflict between Israel and Palestine a new “could darkening” global economy.

“In terms of economic impact, we are very closely monitoring how the situation evolves, how it is affecting especially oil markets. It is too early to say, we have seen some ups and downs in oil prices, and we have some reactions on markets,” said Ms Georgieva during a news conference. “And as I said, we will be closely monitoring this.”

The IMF boss added, “Very clearly this is a new cloud on not the sunniest horizon of the world economy. New cloud darkening this horizon.”

Israel has vowed to annihilate the Hamas movement that rules the Gaza Strip in retribution for the deadliest attack on Jews since the Holocaust when hundreds of gunmen poured across the barrier fence and rampaged through Israeli towns on Saturday.

The Israeli death toll has risen to more than 1,300 people killed since Saturday.

Most were civilians gunned down in their homes, on the streets, or at a dance party.

Scores of Israeli and foreign hostages were taken back to Gaza.

The full scale of the killings has emerged in recent days after Israeli forces reclaimed control of towns, finding homes strewn with bodies, including women who were raped and killed and children who were shot and burned.

Israel has responded so far by putting the enclave, home to 2.3 million people, under total siege and launching by far the most powerful bombing campaign in the 75-year history of the Israeli-Palestinian conflict, destroying whole neighbourhoods.

Gaza authorities say more than 1,200 people have been killed, and more than 5,000 have been wounded in the bombing.

The sole electric power station has been switched off, and hospitals are running out of fuel for emergency generators.

(Sputnik/NAN)