US-Iran Tensions Threaten Gulf Economies with Potential Oil Blockade
The Persian Gulf is currently experiencing heightened tensions between the United States and Iran, with President Trump adopting a 'locked and loaded' stance due to concerns over Iranian domestic unrest and regional influence. Iran has threatened to close the Strait of Hormuz, a critical passageway through which approximately 20% of global seaborne oil is transported. This potential blockade poses a significant threat to the economies of Gulf Cooperation Council (GCC) member states, including Saudi Arabia, the UAE, Qatar, Kuwait, Oman, and Bahrain. These nations rely heavily on the Strait for exporting oil, and a closure could lead to oil prices surging past $120 per barrel. While some Gulf countries have alternative pipelines, such as Saudi Arabia's East-West pipeline and the UAE's Habshan-Fujairah pipeline, these are insufficient to handle the full capacity of oil exports, leading to potential revenue shortfalls and increased budget deficits. 
