Gulf states face economic catastrophe as Iran-Israel war escalates
The ongoing Iran-Israel conflict is hitting the Gulf hard, with drone and missile strikes damaging vital energy sites, airports, and shipping routes.
Experts warn some Gulf states could face their worst downturns since the early 1990s (Qatar and Kuwait are estimated to risk GDP contractions of up to about 14% in a prolonged disruption), especially if oil and gas supplies remain disrupted.
Economic ripple effects and geopolitical concerns
If things don't calm down soon, countries like Qatar and Kuwait could see their economies shrink by up to 14%, while Saudi Arabia and the United Arab Emirates also face big losses.
The closure of the Strait of Hormuz threatens roughly 25% of seaborne oil transit and about 20% of global LNG shipments, meaning higher prices at home for fuel, flights, and even food.
With an estimated $40 billion in tourism revenue losses during Ramadan alone, ripple effects are reaching everywhere: from rising costs for fertilizers to inflation in countries like India and Pakistan.
This crisis is also making people question how much protection US alliances really offer in tough times.