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- Market reactions to the Israel-Hamas war imply investors think the conflict will be contained, Mohamed El-Erian said.
- But any expansion in hostilities could weaken global economic growth as inflation ramps up, he told CNBC.
- Rising oil prices would pressure stocks lower and send yields higher, Ed Yardeni said separately.
The war that erupted this weekend between Israel and Hamas militants has so far led to relatively reserved market reactions, economist Mohamed El-Erian said on CNBC.
That's because investors are treating the conflict as contained, but any enlargement to the hostilities could force a rethink, he cautioned.