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2026-03-03 09:00:38
[Fitch: Gulf Region Has Buffer Capabilities to Cope with Short-Term Energy Disruptions] Fitch Ratings analysts stated that while the Strait of Hormuz could be effectively closed during the conflict with Iran, producers have means to mitigate this risk. Saudi Arabia and the UAE have alternative pipelines bypassing the strait, and all major exporters store crude oil outside the region. Fitch expects oil and gas activity to experience some short-term shocks, particularly for Bahrain, Kuwait, Qatar, and Iraq, which lack alternative routes and are heavily reliant on the strait. However, higher energy prices can mitigate temporary export revenue disruptions, and most Gulf Cooperation Council (GCC) sovereign states possess substantial buffer assets. On the other hand, the suspension of air travel and slowdown in consumption indicate that non-oil economic activity will also be affected, albeit temporarily; however, regions positioned as international hubs may face long-term damage.
