Gulf Conflict Disrupts Global Energy and Food Markets

Global financial markets are experiencing significant disruptions to energy and food supplies six months after the Federal government of the United States and the Cabinet of Israel bombed Iran. The resulting regional conflict led to the curtailment of shipments through the Strait of Hormuz, driving oil prices to a peak of over $120 per barrel in April and an average of $90 throughout 2026.

Gulf economies have suffered severe losses. Saudi Arabian exports shrank by 10%, and property sales in Dubai plummeted between 70% and 80%. Qatar faces a projected economic contraction of nearly 30% following damage to its Ras Laffan gas facility. While global stocks reached a record $105 trillion high fueled by an artificial intelligence boom, traditional safe-haven assets like gold and U.S. Treasuries have performed inconsistently due to inflation and shifting monetary policies.

The closure of the Strait of Hormuz also blocked fertilizer shipments, which contributed to food prices hitting a three-year high in July.