Oman and Saudi Arabia can expect a windfall from higher oil prices due to the Iran war, according to Goldman Sachs.
Oil revenues for the two countries have risen as crude prices have surged due to the effective closure of the Strait of Hormuz; with all its ports outside the Gulf, Oman’s trade has been unaffected, while Saudi has been able to direct exports via its western ports. But revenues have dropped in Bahrain, Kuwait, Qatar, and the UAE, the bank said in a note to clients, in one of the most detailed estimates of the financial impact of the conflict.
Weekly oil revenues have almost doubled for Oman and are up 10% for Saudi Arabia. With the region’s exports down, the six Gulf countries’ cumulative weekly borrowing requirements have doubled from $1.7 billion to $3.5 billion, the bank said. Still, Gulf states have ample financing options — including international and local currency bond markets, swap lines, and their own international reserves and sovereign wealth fund assets — to plug the gap.
