This study seeks to examine the most important security and economic repercussions and challenges of the recent political and security escalation in the Middle East region, represented by the impact of Operation Flood of Al-Aqsa on the Indo-European Economic Corridor. The research aims to analyze the challenges of the project in the ongoing Palestinian-Israeli war on the transit areas and strategic corridor projects in the region and their impact on the sustainability of the project and its economic feasibility. In addition to trying to explore the most important future scenarios for the project in light of the strategic clashes in the region, the research relied on the descriptive analytical approach as well as the inductive one with a focus on the most important economic data and figures related to the developments in the region. The research concluded that the costs of transportation and insurance for global supply chains across strategic geo-economic projects are among the most prominent factors and challenges that may limit the attractiveness of the project. He pointed to the need to adopt flexible strategies to adjust the project's routes away from current war zones, whether through Iraq, Turkey, or Egypt's ports. The study concluded with important recommendations that could be presented to decision-makers regarding the need to enhance and increase security and economic coordination among the countries participating in the project to ensure its sustainability.