The United Nations has warned of a looming economic downturn and humanitarian crisis in the Gulf region as the Iran war reaches its one-month mark. In a recent report, the organization cautioned that ongoing instability is pushing millions toward poverty while placing severe strain on regional economies.
According to the report, disruptions to energy exports and trade are inflicting heavy losses on Arab economies, with total damages estimated between $120 billion and $194 billion. In particular, restrictions on shipping through the Strait of Hormuz have significantly disrupted oil and gas supplies.
A substantial share of the world’s seaborne oil and a significant volume of liquefied natural gas (LNG) pass through this strategic waterway. As a result, any disruption has triggered volatility in global energy markets, directly impacting the economies of Gulf countries.
UN regional official Abdallah Al-Dardari warned that the crisis is rapidly undermining social and economic stability. He stressed that the current situation highlights the urgent need for major policy adjustments among affected countries.
The report identifies Levant countries as the most vulnerable. Poverty rates are rising sharply in Iraq, Syria, Jordan, Lebanon, and Palestine, with an estimated 3.3 million more people at risk of falling into poverty. For nations already struggling with post-conflict reconstruction, the crisis is further complicating recovery efforts.
While some countries are exploring alternative energy transport routes, experts remain skeptical about their capacity to replace large-scale maritime trade. Analysts warn that if the conflict persists, economic pressures will intensify significantly and its ripple effects could extend across the global economy.