I guess the effect will be is that the Middle East will turn into another ground for war. Meaning, collectively as a Muslim, they will have to take sides, and obviously we know where they will be siding on this one, so it will be a regional war that could drag for years and so the death toll would rise.
The current situation in the Middle East. Never mind wars between countries, wars between brothers still often occur, where the war subsides for a while but in just a few months the war rages again. and this is because people in the Middle East have not been able to fully accept differences and diversity so that disputes and conflicts continue to occur.
You are right about that, if the war between Palestine and Israel continues to rage and the conflict escalates to a more powerful proxy, then at least this war will affect the supply of crude oil which will ultimately result in an increase in world oil prices.
Hopefully they can go and find a peaceful negotiations with nation in the middle or a truce should be in effect.
This conflict has been going on for too long and this conflict has claimed too many victims. So, I really look forward to firm action from the UN on the conflict, such as the UN should punish Russia for starting the conflict and carrying out a ceasefire against Ukraine.