The Middle East, including the Gulf countries, produces nearly a third of the world's crude oil and around 17% of global natural gas. Crude oil prices increased globally by around 50% as of 18 March. 
 

Qatar halted LNG production in Ras Laffan and Mesaieed after an Iranian drone attack, taking approximately 20% of global LNG export capacity offline. 

Desalination plants in Bahrain, the UAE, and Kuwait have been struck or narrowly missed. Gulf desalination infrastructure supplies drinking water for about 62 million people across the region. 

Israel suspended gas exports to Egypt's and Jordan's power generation facilities, prompting rolling blackouts in Syria. More than 80% of Lebanon's population relies on water trucking for domestic use; water trucking costs had risen by up to 60% more than before the 2024 to 2025 drought. 

The de facto closure of the Strait of Hormuz has cut off the entirety of Gulf shipping, including Dubai's Jebel Ali, one of the world's ten busiest ports. 
 

In Gaza, only 200 of the 600 trucks needed daily have been allowed entry. Early reports indicate a 120% increase in tomato prices, while cooking oil, flour, and some canned foods have become entirely unavailable in Gaza city. 

Gulf countries export over 30% of the world's seaborne urea fertiliser, with financial benchmark prices rising by about 14% by 2 March following the escalation. Smallholder farmers in Africa and South Asia are among the most exposed. 

Suspending Iraq's oil exports would cause losses of USD 6 to 7 billion per month, threatening the Public Distribution System, the primary food safety net for 39 million people (84% of the population). 

Gulf Cooperation Council countries account for approximately 50% of all remittances in Bangladesh and 41% in Nepal. Disruptions to these flows remove a key buffer for low-income households already facing rising food costs. 

Over 1.04 million people had been displaced in Lebanon by 16 March. Rental prices rose by about 233 to 275% in March, with competition for housing contributing to growing friction between displaced people and host communities. 
 

Syria reinforced its border with thousands of troops, rocket units, and reconnaissance forces. More than 121,000 people crossed from Lebanon into Syria by 16 March through the Masnaa and other crossings. 

Iranian-backed armed groups have been intensifying attacks against US and Israeli assets in Iraq since 1 March. Areas most exposed include Diyala, Kirkuk, and Ninewa governorates in the north and west. 

By 17 March, clashes along the Pakistan and Afghanistan border had internally displaced over 115,000 people across ten Afghan provinces. With Gulf states focused on Middle East hostilities, opportunities for diplomacy are reduced. 

The Houthis in Yemen have not yet entered the conflict but warn they could act at any moment. If they join, their involvement would likely include targeting US and Israeli interests and threatening maritime trade through the Bab Al Mandab Strait. 

The Dubai humanitarian hub accounts for 60% of all humanitarian aid shipped through the UNHRD network worldwide. Airspace and shipping closures have effectively frozen it. WHO reports that more than 50 emergency supply requests, intended to benefit over 1.5 million people across 25 countries, are delayed or awaiting alternative routing. 
 

All crossings into Gaza have been closed since 28 February, simultaneously suspending the entry of aid, fuel, and commercial supplies. WFP has had to reroute deliveries through Egypt, Jordan, Pakistan, Türkiye, and overland corridors. 

UNRWA shut 26 health centres on 2 March and MSF has suspended all activities in southern Lebanon, citing evacuation orders and the absence of security guarantees. Over 132,000 displaced people were staying in 622 collective shelters by 16 March. 

Lebanon's 2025 humanitarian response plan received only a third of the required funding, while UNHCR reported receiving only 10% by January 2026, leading to programme cuts and reduced levels of assistance. 

The Khor Mor gas field in Iraq's Kurdistan region halted supplies to power stations as a precautionary measure, reducing electricity generation capacity by an estimated 2,500 to 3,000MW and affecting hospitals and water pumping stations.