Price fluctuation, risk premium, liquidity pressure and investor confidence decline. In order to solve these risks, a series of measures can be taken, including strengthening supervision, improving market transparency, doing a good job in risk management, and flexibly adjusting investment strategies.

I. Price fluctuation

The conflict between Palestine and Israel often leads to the intensification of market sentiment fluctuation, which makes futures prices fluctuate greatly. Investors' uncertainty about the progress of the conflict will lead to an increase in trading volume, an intensification of the contradiction between supply and demand in the market, and a sharp fluctuation in prices. At this time, we can strengthen market supervision, improve the transparency of information disclosure and reduce manipulation to stabilize price fluctuations.

Second, risk premium.

The conflict between Palestine and Israel will make investors worry about the future market trend, thus increasing the risk premium of the market. Investors usually demand a higher rate of return to bear the risks brought by this uncertainty. In order to solve this problem, we can increase market propaganda, improve investors' knowledge and understanding of the market and reduce the formation of risk premium.

Third, liquidity pressure.

During the Palestinian-Israeli conflict, financial markets often encountered liquidity tension. Investors will generally choose conservative investment strategies, and a large amount of funds will flood into relatively safe assets or safe-haven varieties, resulting in liquidity pressure under unconventional market conditions.

In order to deal with this situation, we can strengthen market supervision, provide sufficient liquidity support and stabilize the market by adjusting monetary policy.

Fourth, investor confidence has declined.

The Palestinian-Israeli conflict will lead investors to be pessimistic about the market prospects and reduce their confidence. This will lead to more conservative behavior of investors and further affect the stability and liquidity of the market. In order to enhance investors' confidence, we can take measures such as strengthening market supervision, improving investors' education and training, and enhancing investors' risk identification and anti-risk ability.