Economist Mohamed el-Erian warns that the escalating Israel-Hamas conflict poses risks to the global economy. As the conflict continues, there is a higher chance of it escalating into a regional conflict, which could have implications for global financial markets. El-Erian states that the conflict amplifies existing challenges facing the global economy, including stagnating growth, high inflation, and market fragmentation. The conflict initially had a limited impact on global markets, but the possibility of regional spill-over involving other players like Iran and Lebanon has caused unease. Additionally, the conflict has made regional cooperation in the Middle East more difficult.