4 million people across the Gulf could be pushed into poverty by war in Iran

Four million people in the Gulf could be pushed into poverty by the war in Iran, says the UN, as the conflict enters its second month.

A report by the United Nations Development Programme (UNDP) on the economic and social repercussions of the war found that Arab nations stand to lose between $120 billion and $194 billion from gross domestic product as a result of disruptions to energy supply chains.

“The number of poor people will increase by about four million people in our region in one month,” said Abdullah Al-Dardari, the UN Assistant Secretary-General and Director of the Regional Bureau for Arab States.

“This is a number that usually takes many years of economic decline, not one month.”

Al-Dardari told Asharq Al-Awsat that the war, which began on 28 February, has caused a “sharp and sudden economic shock.”

“This crisis rings alarm bells for countries of the region to fundamentally reevaluate their strategic choices of fiscal, sectoral, and social policies.”

He continued: “It has become clear that the impact is very large. There is a closure of the Strait of Hormuz, and oil exports have been greatly affected. Therefore, we are going to the extreme scenario, which is a severe impact on energy trade.”