Story perspectives

UNDP Warns US-Israeli War Could Slash Arab GDP 6%

4/2/2026

Summary

Story summary

The United Nations Development Programme (UNDP) forecasts that the ongoing US-Israeli war on Iran could shrink Arab GDP by 3.7%–6%, costing $120–$194 billion.
The report says four million people could fall into poverty and unemployment could rise by up to four percentage points.
The Levant and Gulf Cooperation Council countries will be hardest hit.
UN official Abdallah Al Dardari urged governments to reassess their strategies in light of the crisis.

History

Historical Context

The 1948 Arab-Israeli War, which began on May 15, 1948, followed the UN's Partition Plan and resulted in the establishment of Israel. Approximately 700,000 Palestinians were displaced, marking the Nakba, or "catastrophe." The conflict's legacy continues to affect regional stability, with current US-Israeli tensions potentially reducing Arab GDP by 6%, threatening millions with poverty.

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Story summary

The United Nations Development Programme (UNDP) forecasts that the ongoing US-Israeli war on Iran could shrink Arab GDP by 3.7%–6%, costing $120–$194 billion.
The report says four million people could fall into poverty and unemployment could rise by up to four percentage points.
The Levant and Gulf Cooperation Council countries will be hardest hit.
UN official Abdallah Al Dardari urged governments to reassess their strategies in light of the crisis.

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