Story perspectives

Gulf Conflict Sparks Economic Crisis Across South Asia

3/14/2026

Summary

Story summary

The Gulf conflict harms Pakistan's economy, which relies on oil imports from Saudi Arabia and the United Arab Emirates (UAE).
The Strait of Hormuz blockage drives up fuel prices and forces online classes.
Many families cancel Eid al-Fitr trips due to financial strain.
Economist Kaiser Bengali warns that prolonged disruptions could cause economic collapse.
The energy crisis affects India, Bangladesh, and Nepal, which take measures to cope with rising costs.

History

Historical Context

The Gulf War began on August 2, 1990, when Iraq, led by Saddam Hussein, invaded Kuwait, claiming economic grievances over oil production. This conflict disrupted global oil supplies, causing prices to soar by over 100%. Today, ongoing tensions in the Gulf continue to strain economies like Pakistan's, forcing families to cancel Eid al-Fitr trips and prompting emergency measures in neighboring countries.

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Story summary

The Gulf conflict harms Pakistan's economy, which relies on oil imports from Saudi Arabia and the United Arab Emirates (UAE).
The Strait of Hormuz blockage drives up fuel prices and forces online classes.
Many families cancel Eid al-Fitr trips due to financial strain.
Economist Kaiser Bengali warns that prolonged disruptions could cause economic collapse.
The energy crisis affects India, Bangladesh, and Nepal, which take measures to cope with rising costs.

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