Qatar Posts Record Deficit as Hormuz Crisis Halts Gas Exports

Qatar's finance ministry reported its largest quarterly deficit since 2016 due to disrupted gas exports. The April to June deficit stood at 21.2 billion riyals, or $5.8 billion, nearly double the previous quarter's 10.3 billion riyals.

The Strait of Hormuz crisis led to tankers being cut off from their primary pathway to customers in Asia, resulting in a sharp decline in shipments. Before the conflict, Qatar accounted for around 20% of global LNG supply, but since then shipments have fallen from 20 million tons per quarter to below 2 million.

The damage caused by Iranian drones and missiles has run into billions of dollars, with a drone attack forcing QatarEnergy to close the Ras Laffan export complex in March for the first time in nearly 30 years. Despite this, non-energy income almost quintupled from the first to second quarter, cushioning the blow.