Qatar Cuts Budget Amid LNG Production Decline

Qatar's government has cut its budget by up to 30% in response to a significant decline in liquefied natural gas (LNG) production and exports due to the ongoing US-Iran conflict. The country's main LNG facility, Ras Laffan, was attacked by Iran during the conflict, causing a 17% reduction in production.

The budget cuts are also expected to reduce Qatar's overseas aid spending by around 85% for 2026. This will likely impact the country's contribution to international programs, including aid to the United Nations' Office for the Coordination of Humanitarian Affairs, which received $1.5 billion in 2025.

The Financial Times reported that the budget cuts are a direct result of the collapse in Qatar's income from LNG production, citing statements from three people briefed on the matter. The report stated that Qatar's 2026 budget amounts to $61 billion, but it is unclear how much the planned cuts to government departments will reduce the total budget.