Gulf Economies at Risk of Worst Slump Since ‘90s on Iran War

TOPSHOT - Motorists drive past a plume of smoke rising from a reported Iranian strike, in Doha on March 1.Photographer: Mahmud Hams/AFP/Getty Images

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By Mirette Magdy

March 15, 2026 at 4:28 PM UTC

Updated on

March 16, 2026 at 11:42 AM UTC

The Iran war threatens to deal significant blows to the Gulf’s biggest economies, including Saudi Arabia, the United Arab Emirates and Qatar, if it doesn’t end soon.

Qatar and Kuwait could each see their gross domestic product contract by 14% this year should the conflict continue through to the end of April, which would mean a two-month effective halt in oil and natural flows through the Strait of Hormuz, according to Goldman Sachs Group Inc. economist Farouk Soussa.