AMMAN/SINGAPORE: The war triggered by a joint attack by United States and Israel on Iran has cost Arab countries an estimated $186 billion in just one month, a senior United Nations official said, urging an immediate ceasefire.
Abdallah Al Dardari, UN Assistant Secretary-General, stated that the conflict has reduced the Arab regionâs GDP by about six percent, amounting to $186 billion in losses. He warned that continued fighting would have severe global economic consequences.
The Gulf region is bearing the largest share of the losses, estimated at $168 billion, while the Levant region faces around $30 billion in damage. The conflict, which began on February 28, quickly spread across the Middle East. Iran retaliated with strikes targeting Gulf countries and Israel, while Lebanon and Iraq became involved through pro-Iran groups attacking Israeli and US interests.
Al Dardari highlighted the regionâs economic vulnerability, noting its heavy dependence on oil. The crisis around the Strait of Hormuzâa key route for global oil and gasâhas exposed the risks of relying on a single commodity. He stressed the need for economic diversification and alternative trade routes, as both oil-exporting and non-oil economies in the region are interconnected and dependent on oil revenues.
The conflict is also expected to have serious social consequences. Around 3.7 million jobs could be lost, and an additional four million people may fall below the poverty line.
Meanwhile, Asia is facing a growing energy crisis due to disruptions in oil supply. According to maritime analytics firm Kpler, crude shipments to Asia have sharply declined, with limited alternatives available.
Countries such as China, Indonesia, and the Philippines are particularly affected, with the latter already declaring a national energy emergency. Analysts warn that the situation could worsen if the conflict continues, as energy inventories are rapidly depleting and supply routes remain uncertain.
