Qatar's Economy Braces for $20 Billion Revenue Loss Due to Strait Closure

Qatar's economy is reeling from the war with Iran and the ongoing closure of the Strait of Hormuz, which has severely damaged its liquefied natural gas exports. The Gulf state's annual budget for 2026 was set at $61 billion but has been cut by 30% due to the economic strain.

The Qatar Investment Authority, which manages the nation's foreign assets, is facing major cuts across its global portfolio, including a planned $500 billion commitment to the US technology, energy, and infrastructure sectors. The authority is also slashing its international investment budget by 85%, affecting projects in India, Indonesia, and Turkey.

The crisis stems from Qatar's dependence on LNG exports, which accounted for nearly 35% of its GDP last year. Data from the International Energy Agency shows that combined LNG output from Qatar and the UAE dropped by nearly 80% between March and June compared to the same period last year.