Gulf economies face long-term hit from Iran conflict
An Iranian ballistic missile struck Qatar's Ras Laffan gas complex, knocking out an estimated 17% of global LNG supply and costing QatarEnergy $20bn in lost annual revenues. The conflict with Iran has caused up to $58bn of damage across the Gulf region, pushing it into a major economic shock.
Qatar's decision to develop its vast offshore gas reserves in the 1990s transformed it into one of the richest countries globally. On March 18, an Iranian ballistic missile struck the main Ras Laffan gas complex, knocking out 17% of global LNG supply. The damage will cost QatarEnergy $20bn in lost annual revenues and disrupt supplies to key markets in Asia. The conflict with Iran has caused up to $58bn of damage across the Gulf region, with over 80 facilities hit since February 28. The World Bank has cut its growth forecast for the Middle East to 1.8% this year, warning of long-term scarring. Qatar and Kuwait will see the biggest contraction, while Saudi Arabia and the UAE have shown more resilience due to alternative oil exports.
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