Report: $200 billion in damages in Gulf states from Iran war.. expected to reach $790 billion

Allianz Trade estimated direct damages to Gulf states from the Iran war at over $200 billion, expecting cumulative losses to reach $790 billion by 2030. More than 80 energy facilities were damaged, and the report forecast a 4% contraction in GCC GDP in 2026.

Allianz Trade, a specialized financial risk assessment firm, estimated in a report published Wednesday that material damages to Gulf Arab states from the Iran war exceed $200 billion, concentrated mostly in economies and energy infrastructure. It projected the region would incur losses of $790 billion by 2030. During the war, Gulf states were struck by Iran in retaliation for the US-Israeli attack on the Islamic Republic that began on February 28. The attacks targeted oil infrastructure, energy facilities, airports, ports, and military bases hosting US forces. The war halted navigation through the Strait of Hormuz for petroleum product shipments, causing a sharp rise in global oil prices. The report stated that over 80 energy facilities were damaged during the war, most in Kuwait, Qatar, and Bahrain, with a third suffering 'severe damage.' It forecast a 4% contraction in GCC GDP for 2026, an 8.2% decline compared to pre-war projections. It noted the war also negatively impacted other sectors such as tourism and real estate.