Qatari Economy Reels from 90% Plunge in LNG Exports

Qatar's budget deficit in the second quarter reached approximately $5.8 billion, marking the highest level since the end of 2016 and nearly double that of the previous quarter.

The country's liquefied natural gas (LNG) exports plummeted from about 20 million tons per quarter in the same period last year to less than 2 million tons during April to June this year, due to the blockade of the Strait of Hormuz following the US-Iran conflict.

The Qatari Ministry of Finance stated that due to the effective blockade, the country's natural gas revenues have almost evaporated, leading to its largest quarterly budget deficit in nearly a decade.

Before the outbreak of war at the end of February and Iran's blockade of the strait, Qatar's LNG exports accounted for one-fifth of the global total. The country has no alternative shipping routes to bypass the Strait of Hormuz, preventing its vessels from delivering natural gas to international buyers in Asia.