The business sector is closely monitoring the conflict between Israel and Hamas, as it is concerned about escalating violence and the potential impact on trade relations between Thailand and Israel, worth an estimated 40 billion baht.
According to Sanan Angubolkul, chairman of the Thai Chamber of Commerce, Thai businesses are also being advised to keep abreast of the latest news about the conflict and carefully manage potential risk.
Special caution is advised for those engaged in trade with countries in the Middle East as there may be additional impacts if the conflict escalates, he said.
However, Mr Sanan insisted the conflict is unlikely to significantly affect Thailand's trade with Israel. This is because the trade volume between the two countries is not substantial.
During the first eight months of this year, bilateral trade was worth roughly US$857 million (about 31.8 billion) in total.
The total trade value for the entire year is put at 40 billion baht, which accounts for 0.2-0.3% of Thailand's trade worldwide, according to Mr Sanan.
Nevertheless, he said there is a significant number of Thais working in Israel, estimated at around 30,000. The government has already prepared measures to evacuate Thai nationals, hoping that both parties can negotiate and find a peaceful resolution, he said.
Thanavath Phonvichai, president of the Univeristy of the Thai Chamber of Commerce, also expects the Israel-Hamas conflict to have a minimal impact on Thailand's trade and tourism.
According to Mr Thanavath, the conflict has lasted for more than 50 years, with no involvement of a third-party national force in recent times. This indicates that the conflict will remain confined to the two parties and there is no indication that it will escalate into a larger conflict in the near future.
However, what affects Thailand is the unrest among the Thai workforce in the region, leading to injuries, casualties and uncertainty over employment. These are direct impacts, but it is believed that the government and foreign ministries will manage and address these issues, he said, adding that Israel is also expected to enhance security measures due to the sudden nature of the attacks.
According to Mr Thanavath, as long as transport routes are not disrupted and there is no complete closure of the country's borders, trade should not be significantly impacted.
In addition, Israel's demand for goods is likely to increase due to the instability, he said.
Regarding tourism, around 200,000 Israeli tourists visit Thailand annually, which is not considered a substantial number. If the situation is resolved quickly, the monthly influx of tourists, estimated at 10-20,000, should not have a significant impact.
Estimated spending per person is 42,000 baht per trip, which is not very high. Therefore, the direct impact on Thailand is not expected to be severe and it is unlikely to have a significant impact on the economy, he said.
However, Mr Thanavath noted that the war may cause the world's oil prices to rise further if uncertainties arising from the fighting continue, indirectly affecting domestic oil prices.
However, he said the domestic oil price rise is unlikely to exceed 1-2 baht per litre and it should only be a short-term effect.
REMAINING VIGILANT
The war has sparked concern over the fluctuations in global crude oil prices and prompted energy authorities to look into the possibility of oil supply disruptions.
"We are worried about an oil price surge if the situation escalates because the conflict erupted in an oil-rich region," said Prasert Sinsukprasert, permanent secretary for energy.
The Middle East accounts for 33% of global oil supply. Attacks launched by Israel and Palestinian militants may have an impact on oil prices.
"We hope such a scenario will not occur, but at this time of uncertainty we hope people will be more aware of saving energy," he said.
The West Texas Intermediate reference crude oil prices are expected to stand at $80-87 per barrel this week while Brent reference prices should range between $78 and $85 per barrel, according to an estimate by Thai Oil Plc, the oil refinery arm of national oil and gas conglomerate PTT Plc.
Crude oil prices will tend to decrease during the week, thanks to additional oil supply from Africa and South America, the company said.
Mr Prasert said the war has so far caused no impact on global oil supply, but the authorities need to prepare a strategic oil reserve plan, aimed at reducing any impact on oil supply.
Up to 57% of oil supply in Thailand is imported from the Middle East.
According to the Energy Ministry, the national crude oil reserve currently stands at 3.91 billion litres, with another 1.63 billion litres being transported to the country.