Gulf economies face potential downturn if Iran conflict continues

The ongoing US-Israeli conflict with Iran could severely impact Gulf economies, with Qatar and Kuwait facing potential GDP declines of 14% if oil and gas flows through the Strait of Hormuz are disrupted for two months. While Saudi Arabia and the UAE may manage better due to alternative export routes, they still risk GDP drops of 3% and 5%, respectively. The turmoil is already affecting hydrocarbon revenues and non-oil sectors, with rising oil prices further complicating the situation.

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