Gulf economies lose over $50B as Hormuz crisis disrupts energy flows
Gulf economies have suffered losses exceeding $50 billion following the closure of the Strait of Hormuz, which has sharply reduced oil and gas exports, according to a new analysis.
The conflict, now in its second month, began with U.S. and Israeli strikes on Iran and subsequent retaliation by Tehran, escalating into a wider regional crisis.
Oil exports from key producers—including Saudi Arabia, Iraq and the UAE—fell by more than 36% between late February and late March, leading to losses of over $15 billion in oil revenues, the report by the Türkiye Energy Strategies and Policies Research Center (TESPAM) said. Including LNG and other disruptions, total economic damage surpassed $50 billion.
The Strait of Hormuz, a vital route for about a quarter of global seaborne oil and major LNG shipments, remains at the center of the crisis. Reduced traffic has cut export volumes and slowed economic activity across the region, affecting trade, logistics and tourism.
Analysts described the disruption as one of the most severe in modern history. Emergency oil stock releases by International Energy Agency member states have helped stabilize markets after prices briefly exceeded $100 per barrel.
Oil prices surged again on Thursday, with Brent crude rising above $107 after U.S. President Donald Trump warned of intensified strikes on Iran, raising concerns about prolonged conflict and further supply disruptions.
Experts say the crisis is reshaping global energy markets, increasing reliance on alternative suppliers such as the U.S., Africa and Central Asia.
