LONDON U.S. Treasury Secretary Janet Yellen said on Monday it was too early to speculate on the economic consequences of the Israeli-Palestinian conflict, and that the impact would depend on whether the conflict spread to the wider region.

"We're looking at the potential economic implications of the hostilities ... It's too early to speculate on whether or not there will be significant consequences," she told Sky News.

"I think importantly it depends on whether the hostilities extend beyond Israel and Gaza, and that's certainly an outcome we would like to avoid."

Asked whether the U.S. and the west could afford another war at this time, Yellen said: "I think the answer is absolutely. America can certainly afford to stand with Israel and to support Israel's military needs, and we also can and must support Ukraine in its struggle against Russia."

(Reporting by Kylie MacLellan, writing by William James; Editing by Sachin Ravikumar and Kate Holton)