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The Iran war has hit two mainstays of Gulf business: energy exports and aviation. The disruption extends to Europe, where buyers have had to replace missing gas supplies.
Despite grim forecasts, the World Bank projects regional economies could rebound by 7.8% in 2027 if the conflict ends this year, though the Hormuz blockade and inflation remain major threats.
The World Bank said the wider Middle East, North Africa, Afghanistan, and Pakistan region is expected to contract 2.1% this year, following growth of 3.3% in 2025.