Oil has crossed the $100-a-barrel mark again, but for Gulf countries this is not simply good news. Brent reached about $100.07 on Wednesday, its highest level since July, as the U.S.-Iran war and attacks on Saudi energy facilities raised fresh fears about supplies.
For countries such as Saudi Arabia and the UAE, the basic calculation is simple.
When oil sells for more, governments can earn more from every barrel they export. That can mean more money for government budgets, infrastructure and large development projects.
The higher price is being caused by the war itself. If attacks damage oil facilities or make shipping routes unsafe, Gulf producers may have fewer barrels to sell.
That risk is already visible in Saudi Arabia, where Iran-backed Houthi forces have attacked energy facilities in the south, including sites around Jazan.
The Strait of Hormuz adds another layer of risk. Before the latest escalation, around 8-9 million barrels of oil a day were moving through the waterway; recent flows have fallen to below two million barrels a day.
Saudi Arabia has some protection because part of its oil can be moved through pipelines to the Red Sea, avoiding Hormuz. But other Gulf economies remain exposed to the cost of disrupted shipping.
The UAE is in a stronger position because its economy is less dependent on oil than it was in the past. Dubai earns heavily from real estate, tourism, aviation, trade and financial services, so higher oil prices can help government finances while also increasing costs for businesses and consumers.
And that is where the $100 price becomes complicated. Expensive oil brings more revenue, but war also means higher shipping, insurance, transport and energy costs, while weaker tourism, aviation and property activity can put pressure on the wider economy.
For the Gulf, therefore, $100 oil is a benefit only if producers can keep exporting. If prices remain high because the region is losing production and shipping capacity, the extra money from oil may come with an increasingly expensive bill elsewhere.
Russia's Defence Ministry said its forces struck two cargo vessels overnight in the Ukrainian Black Sea port o...
Saudi Arabia has temporarily shut down its 1,200-kilometre East-West oil pipeline after it was hit by a drone attack, with Riyadh and Baghdad sayin...
Saudi Arabia is opening up to more international travellers as tourism expands beyond religious travel. In Riyadh, historic landmarks stand alongsi...
Overnight Iranian strikes on an air base in Jordan damaged multiple U.S. aircraft and left one without a wing, American media reported. Meanwhile, explosions were heard across parts of southern Iran according to local media reports.
Iranian President Masoud Pezeshkian arrived in New Delhi on Friday to attend the weekend BRICS summit, amid the ongoing U.S.-Iran conflict, joining a host of foreign dignitaries.
Ukrainian forces struck a Russian oil refinery in Siberia and a seaport in Dagestan in the past 24 hours, President Volodymyr Zelenskyy said. He will meet Canadian Prime Minister Mark Carney on Thursday to discuss air defences for Ukraine over winter.
A Russian strike on a gas station in Kyiv has killed two people, the city's Mayor Vitali Klitschko said in a statement on Telegram. In Russia, online marketplace Ozon has suspended operations in Saratov, southwestern Russia, following a drone strike on a warehouse in the region.
Twenty-five years after the September 11 attacks drew the U.S. into Afghanistan, the Taliban is seeking a new relationship with Washington built on diplomacy, investment and trade, despite deep divisions between the former enemies.
Russia's Defence Ministry said its forces struck two cargo vessels overnight in the Ukrainian Black Sea port of Chornomorsk, the Interfax news agency reported on Saturday.
Saudi Arabia has temporarily shut down its 1,200-kilometre East-West oil pipeline after it was hit by a drone attack, with Riyadh and Baghdad saying the strike originated from Iraq.
U.S. President Donald Trump arrived in Dublin on Saturday to meet Ireland’s leaders. He will also attend a golf tournament at one of his resorts, taking a brief detour from his focus on the Iran war and his party’s efforts to retain control of Congress in November’s midterm elections.
Dubai’s property market has spent years climbing. Now, for the first time since 2021, prices are moving in the opposite direction.
Colombian President Abelardo De La Espriella has formally ended all government peace negotiations with illegal armed groups, marking a dramatic shift in the country's security strategy and delivering on a central pledge from his election campaign.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment