The widening war centered on Iran is rapidly reshaping the economic balance across the Gulf, with Saudi Arabia and Oman emerging as key strategic beneficiaries while the United Arab Emirates faces a sharp economic shock as trade, tourism and aviation decline.

The conflict has severely disrupted global energy flows after attacks on key infrastructure and the effective closure of the Strait of Hormuz, one of the world’s most critical shipping corridors through which roughly one fifth of global oil trade normally passes.

The interruption has forced Gulf producers to slash output by millions of barrels per day and reroute exports through alternative routes, triggering one of the largest disruptions to global oil supply in modern history.

Saudi Arabia has been able to mitigate part of the disruption by redirecting shipments through its Red Sea terminals and inland pipeline network.

The kingdom has sharply increased exports through western ports, allowing it to maintain a major presence in energy markets even as shipping across the Gulf remains highly restricted.

The surge in global oil prices following the conflict has further strengthened the strategic value of Saudi energy production.

Oman has also gained renewed importance as regional trade routes shift away from the vulnerable Strait of Hormuz.

Ports along the Gulf of Oman and new logistics corridors are increasingly serving as alternative gateways for cargo and energy shipments as companies attempt to maintain supply chains amid the maritime disruption.

By contrast, the United Arab Emirates — particularly its flagship commercial hub of Dubai — is experiencing a steep economic downturn as the war undermines sectors that rely on regional stability.

Air traffic across the Gulf has been sharply reduced and airlines are operating at less than half their normal capacity, while tourism has dropped dramatically as travelers avoid the conflict zone.

Financial markets and business confidence in the Emirates have also been shaken by the wider regional instability.

Forecasts suggest that the country’s economy could contract this year as investment slows and key sectors such as aviation, logistics and real estate face a sudden decline in demand.

The war’s economic consequences are spreading across the entire Gulf region.

Analysts warn that prolonged disruption to shipping routes and energy infrastructure could remove millions of barrels of oil from global markets and reshape trade patterns for months or even years.

As tensions persist, countries capable of bypassing the Strait of Hormuz or developing alternative logistics corridors are emerging with greater strategic influence, while heavily trade-dependent economies are confronting the immediate financial impact of a conflict that is rapidly transforming the region’s economic landscape.