Saudi warns of economic fallout from Israel's war on Gaza at global summit

Saudi Arabia has called for regional "stability", warning of the effects of ongoing Israel's war on Palestinian territıory on global economic sentiment at the start of a summit attended by a host of Gaza mediators.

US Secretary of State Antony Blinken, Palestinian leaders and high-ranking officials from other countries trying to broker a ceasefire between Israel and Hamas are on the guest list for the summit in Riyadh on Sunday, capital of the world's biggest crude oil exporter.

The war in Gaza along with conflicts in Ukraine and elsewhere put "a lot of pressure" on the economic "mood", Saudi Finance Minister Mohammed al Jadaan said at one of the first panel discussions of the two-day World Economic Forum (WEF) special meeting.

"I think cool-headed countries and leaders and people need to prevail," Jadaan said. "The region needs stability."

The war in Gaza, which has sent regional tensions soaring, began with an unprecedented operation on southern Israel by the Palestinian group Hamas on October 7.

Vowing to destroy Hamas, Israel's retaliatory offensive has killed at least 34,454 people in Gaza, mostly women and children, according to the health ministry.

Speaking in Riyadh, Palestinian president Mahmud Abbas said the United States "is the only country capable" of preventing Israel's long-feared invasion of Rafah city in southern Gaza.

"We appeal to the United States of America to ask Israel to stop the Rafah operation," Abbas said, warning it would harm and disp lace civilians, and be "the biggest disaster in the history of the Palestinian people".

'New momentum'

Saudi planning minister Faisal al Ibrahim told a press conference on Saturday, previewing the summit, that the world is "walking a tightrope right now, trying to balance security and prosperity".

"We meet at a moment when one misjudgement or one miscalculation or one miscommunication will further exacerbate our challenges."

WEF president Borge Brende said there was "some new momentum now in the talks around the hostages, and also for... a possible way out of the impasse we are faced with in Gaza".

However there will be no Israeli participation at the summit.

"This is more an opportunity to have structured discussions" with "the key players" including mediators Qatar and Egypt, he said.

"There will be discussions, of course, on the ongoing humanitarian situation in Gaza" as well as on Iran, which backs Hamas and Lebanon's Hezbollah group, he added.

The US State Department said Blinken will "discuss ongoing efforts to achieve a ceasefire in Gaza that secures the release of hostages".

Hamas said on Saturday it was studying the latest Israeli counterproposal regarding a potential ceasefire in Gaza, a day after media reports said a delegation from mediator Egypt arrived in Israel in a bid to jump-start stalled negotiations.