How does the Israel-Hamas conflict affect your portfolio?

Without dismissing the utter misery that has been inflicted on the region, should we be also worried about the impact of the Israeli-Hamas conflict on the global oil market and -indirectly- the global economy and your own portfolio? If so, you might want to read this article by National Bank's Angelo Katsoras, who analyzes the geopolitical and market risks of a prolonged war. Here are some key points from the article:

• Iran could be behind the attacks on Israel and could target oil facilities or tankers in the Persian Gulf -as it has in the past- disrupting oil supplies and increasing prices.
• Is the US going to tighten sanction on Iran again? What does this do to oil prices?
• A big concern: does it spill over into other countries in the middle east?
• The conflict could derail the efforts to normalize relations between Israel and Saudi Arabia.
• Further, if we see heightened oil prices, do the Saudis increase oil production to stabilize prices and risk being seen as sympathetic to Israel or do they let prices rise and risk triggering a global recession?

We -here in Alberta and Canada- are always pushing for higher oil prices of course but, like the Saudis, we need to be concerned if it goes too far. Supply shocks to energy allows resource businesses to temporarily increase their revenue but any looming recession may end up having a negative effect on revenue for a longer period.