Development bank says economic fallout is already spreading, through higher energy and fertiliser costs, damage to tourism and higher debt-servicing costs.
Georgia is the standout economic story in the South Caucasus but investors are increasingly looking at governance and democracy.
Markets are pricing a rapid end to the Middle East conflict, but JP Morgan's head of global macro research warned this is a mistake.
After more than a year of continuous demonstrations, the ruling Georgian Dream has severely cracked down on the right to protest, freedom of speech and political pluralism.