BNP Paribas economist Paul Hollingsworth stated during a webinar that the Middle East conflict has now reached a breadth significant enough to inflict damage on the global economy. The developed markets chief economist explained that structurally higher energy prices are emerging, which will squeeze consumers' real incomes. He further noted that heightened uncertainty and decreased risk appetite are likely to dampen both consumption and investment. While oil price shocks typically create winners and losers—for instance, boosting revenues for energy producers while reducing them for energy consumers—the adverse effects are more pronounced. The economist indicated that spending cuts in energy-consuming nations tend to outweigh spending increases in energy-producing nations. Consequently, this results in a net negative impact for the global economy.