Qatar's Budget Deficit Worsens Amid Strait of Hormuz Blockage

Qatar's budget deficit reached its widest quarterly level in almost a decade due to natural gas revenue dwindling significantly after the war between the US and Iran effectively shut down the Strait of Hormuz.

The country posted a deficit of 21.2 billion riyals ($5.8 billion) in the second quarter, more than double the previous three-month period's shortfall of 10.3 billion riyals.

Qatar's liquefied natural gas exports plummeted from around 20 million tons per quarter last year to less than 2 million between April and June of this year, primarily due to its inability to bypass the strait without alternative shipping routes.

The country's energy revenue plunged as a result, causing an economic contraction of more than 8 percent this year, according to the International Monetary Fund.