Caught in the crossfire: US-Israel war on Iran fractures Gulf economies

"Caught between a United States-Israeli prosecuted war against Iran and Tehran's asymmetric retaliation, the Gulf is paying a heavy price for its geography. Salem Al-Jahouri, a journalist and researcher, told Al Jazeera Arabic the GCC finds itself between the hammer and the anvil. This geopolitical squeeze has generated profound political shockwaves."

"The most immediate shock is the virtual closure of the vital global artery, the Strait of Hormuz, which typically handles 20 million barrels per day (bpd) of oil, roughly 20 percent of the world's seaborne oil trade. Export volumes have plummeted to less than 10 percent of pre-conflict levels."

"Iraq's limited storage has reached maximum capacity, forcing a production cut from 3.3 million bpd down to 1.3 million. Iraqi oil ministry sources are now desperately seeking alternative outlets, including using Omani ports for strategic storage."

Gulf Cooperation Council states are experiencing significant economic fallout from the US-Israeli conflict with Iran, despite their efforts to prevent escalation. The Strait of Hormuz, which handles 20% of global seaborne oil trade, has virtually closed, reducing export volumes to less than 10% of pre-conflict levels. Iraq faces the most immediate crisis with only six-day crude storage capacity, forcing production cuts from 3.3 million barrels per day to 1.3 million. Gulf states, which invested trillions diversifying their economies away from oil dependency, now confront threats to their strategic infrastructure and economic blueprints. The region absorbs financial costs of a conflict it neither initiated nor endorsed, caught between geopolitical pressures while seeking alternative export routes.

Read at www.aljazeera.com