Saudi Arabia’s Finance Minister Mohammed Al-Jadaan said the ongoing crisis in the Middle East has exposed a growing divide between the region’s economies, with some better positioned to absorb the shock than others, as prices across the region continue climbing in the wake of the US-Israel war against Iran that began in February.
Al-Jadaan said escalating conflicts and trade tensions risk further disrupting critical trade routes, adding to pressure on commodity prices, including refined energy products, and worsening both energy and food security across the broader region.
The International Monetary Fund has said economic reforms and precautionary measures adopted by Gulf Cooperation Council countries in recent years have strengthened their ability to withstand the economic fallout from the war and the wider regional turmoil it has triggered.
Low-income, oil-importing countries in the region are bearing the brunt of rising global energy costs, lacking the fiscal buffers and reserves that have helped wealthier Gulf economies manage the disruption to oil and gas flows triggered by the conflict.
The comments add to a broader chorus from regional and international officials warning that the economic fallout from the Iran war is not being felt evenly, with the gap between well-capitalized Gulf states and more exposed, import-dependent economies likely to widen further the longer the conflict and its associated trade disruptions persist.
