The Iran war has had a broader impact on the economies of the Middle East than any other conflict in the past 50 years, striking 10 countries that together account for 70% of the region’s economic output, according to analysis by Semafor columnist Alaa Shahine Salha in Asharq Business. Past wars cut deeper into individual economies, but continuing oil revenues generally offered some protection. This time, the energy sector has been one of the areas most directly affected, alongside aviation, finance, and wider trade flows; the IMF expects regional growth of just 1.1% this year.
The last shock this big was the 1973 oil crisis, when Arab members of OPEC blocked oil supplies to Western allies of Israel. Higher oil prices then sparked a Gulf boom. This time the shock is having the opposite effect, stalling regional economies and slowing reconstruction efforts across Gaza, Lebanon, Sudan, and Syria.