Gulf Companies Report Heavy Losses Following War With Iran

Companies across the Gulf region are reporting second-quarter earnings that reveal the financial toll of a four-month war with Iran that began in late February 2026. While energy and telecommunications sectors remain resilient, banks and real estate have faced declines driven by inflation and reduced international travel. The closure of the Strait of Hormuz caused economic contractions in the United Arab Emirates, Qatar, and Kuwait, while Saudi Arabia and Oman remained more stable.

Specific losses include a forecasted 19% decline in domestic gas sales for Abu Dhabi Gas Industries Ltd. and a drop in Dubai residential sales below pre-conflict levels. Conversely, Saudi Arabia's economy is expected to grow 2.1% this year, aided by oil terminals on the Red Sea. In Oman, the stock index has outperformed other regional markets due to the country's location outside the Strait of Hormuz.

On Wednesday, Donald Trump declared an interim peace agreement following new Iranian attacks on U.S. bases in the Gulf. Despite this diplomatic movement, financial analysts note that the second quarter is the first period to fully reveal the war's impact, with credit risks remaining high for companies exposed to consumer and service demand.