PNN – Reuters reported that the conflict involving the US, Israel, and Iran has undermined the credibility and security of Arab commercial hubs.
According to the report of Pakistan News Network; Reuters stated in a report that the conflict with Iran has highlighted the excessive reliance of Gulf Arab states on the Strait of Hormuz—a waterway that previously served as the transit route for 20 percent of the world’s oil flow.
The report states that, beyond disruptions to maritime transport, attacks on production facilities in the Persian Gulf region have significantly impacted oil refineries, aluminum plants, data centers, and other facilities, while air traffic remains below pre-war levels, affecting tourism and the region’s flow of trade.
Reuters added: On another level, this war has tarnished the reputation of Persian Gulf Arab commercial hubs as safe havens.
According to forecasts, the economies of Qatar and Kuwait will contract by more than 8 percent this year. Qatar—already one of the world’s largest exporters of liquefied natural gas (LNG)—is entirely dependent on the Strait of Hormuz for its LNG exports.