Israel-Hamas war threatens world economy, bankers tell forum

The Gaza war raging between Israel and Hamas could deal a heavy blow to the global economy, banking bosses told an investment forum in Saudi Arabia.

The mood from some of the gathering's most high-profile speakers underscored how the conflict threatens attempts by the world's biggest oil exporter to diversify its economy away from fossil fuels.

"What just happened recently in Israel and Gaza ... you put all this together, I think the impact on economic development is even more serious," World Bank President Ajay Banga told the Future Investment Initiative (FII).

"I think we're at a very dangerous juncture," he added at the event often referred to as "Davos in the Desert".

The war risks drawing in other countries, notably Lebanon, home to the Iran-backed Hezbollah militant group which has engaged in daily exchanges of fire with Israeli forces.

BlackRock CEO Larry Fink said that "if these things are not resolved, it probably means more global terrorism, which means more insecurity, which means more (of) society is going to be fearful, less hope.

"And when there's less hope we see contractions in our economies."