Qatar's Budget Deficit Surges Amid Hormuz Crisis

Qatar's budget deficit has hit its widest mark in almost a decade, according to recent data from the finance ministry. The country recorded a shortfall of 21.2 billion riyals ($5.8 billion) in the second quarter, more than double the previous three-month period.

The significant decline is largely due to a sharp decrease in natural gas revenue, which plummeted after the US-Iran conflict effectively shut down the Strait of Hormuz. Qatar's LNG exports dropped from 20 million tons per quarter last year to less than 2 million between April and June this year.

Unlike its neighbors Saudi Arabia and the UAE, Qatar lacks alternative shipping routes to bypass the strait, leaving its vessels unable to reach international buyers in Asia. The country has been a frequent target for Iranian drones and missiles, causing billions of dollars-worth of damage.