Gulf countries reconsider all commercial investments amid Middle East war: The Financial Times

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source: net 


Financial stability in the Gulf has been hit by the Iran-Israeli-US military conflict. Profits in the energy business have fallen significantly. The pressure on the global economy is increasing due to the impact of the Iran War. The Financial Times reported that as the pressure on the economy is increasing due to the US-Israeli military aggression against Iran, important Gulf countries such as Saudi Arabia, the United Arab Emirates, Kuwait and Qatar are reconsidering their investment obligations, commitments and commercial agreements. The Times reported, citing the leaders of the Gulf countries, that these countries have started internal discussions to examine whether the ‘Force Majeure’ clause (temporary or permanent exemption of the parties concerned from the obligation to fulfill their contractual obligations in situations of war, natural disasters) will be applied to current agreements. They are also reviewing current and future investment commitments to ease the financial burden caused by the war. The report states that the review may also affect investment assurances given to foreign governments and companies, sports sponsorship deals, and agreements with international business organizations. The Times reports that the financial burden on the government budgets of the Gulf countries is increasing due to increased defense spending and reduced energy exports. The whole issue has also come to the attention of the White House.

The financial burden on the government budgets of the Gulf countries is increasing due to increased defense spending and reduced energy exports. The whole issue has also come to the attention of the White House.

The Iran-Israeli-US military conflict has damaged financial stability in the Gulf. Profits in the energy business have fallen significantly. After the attacks on several tankers in the current conflict, the movement of crude oil, cargo ships, and tankers through the Strait of Hormuz is slowing down. One-fifth of the world's total oil and gas supply passes through it. Tourism and aviation have also been hit after Iran attacked US military bases, embassies and their infrastructure in the Gulf. Last year, President Donald Trump visited the Gulf. Gulf countries had promised to invest hundreds of billions of dollars in America. If the promised investment slows down, pressure may increase on Washington to move towards a diplomatic solution to stop the war. In the meantime, influential people in the Gulf business community have started strongly condemning the ongoing military conflict. Targeting Trump, Dubai billionaire Khalaf Ahmed Al Habtoor has questioned the decision to attack Iran in the X Post. He wrote, "Who gave you the power to engage our region in a war with Iran? On what basis did you make this dangerous decision? Did you calculate the potential damage before pulling the trigger? Did you consider that if the conflict escalates, the Gulf countries will be the first to suffer!"

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