Gulf States in April 2026: the most important developments in economy
The Gulf states' economy in April 2026 was dominated by oil prices and the disruption of shipping through the Strait of Hormuz during the war involving Iran. The most covered story of the month came on April 20, when oil prices jumped after the United States seized an Iranian vessel near the strait. The month began with OPEC output down by 7 million barrels per day and prices coming off a record 60% gain in March. A two-week US-Iran ceasefire announced on April 7 and 8 brought sharp price falls and a rise in stock markets, but few tankers passed. On April 13 the United States announced a blockade of the strait and oil rose past $100 per barrel. The strait reopened on April 17 and 18 and prices fell, but ship traffic dropped to nearly zero by April 26 after Iran renewed its closure. By April 29 oil stood above $114 per barrel, peace talks had stalled and the US was maintaining the blockade.
On April 28 the United Arab Emirates announced it would leave OPEC and the wider OPEC+ alliance from May 1, following disagreements with Saudi Arabia. OPEC forecast a bleak future after the exit, while Russia said it would not withdraw from the alliance.
The war also damaged Gulf infrastructure. Iran struck water and gas facilities in Kuwait and the UAE, including an electricity and desalination plant in Kuwait. Saudi Arabia halted several energy facilities after attacks, cutting output by 700,000 barrels per day, and restored its East-West pipeline to its full 7 million barrels per day on April 12.
Governments and lenders responded with financial measures. The UAE injected $8 billion in liquidity for banks and Dubai launched a Dh1 billion stimulus package, while Dubai property sales fell by more than 30%. Saudi Arabia extended $8 billion in support to Pakistan, which repaid $2 billion to the UAE with a further $1.5 billion due by April 23. The UAE was reported to be in talks with the United States about a currency swap.
by WorldBrief & Maksim Micheliov | AI-generated summary
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