Iran War Cancels Bahrain, Saudi Grand Prix, Shaking Formula 1 Finances

The Bahrain and Saudi Arabian Grands Prix in April 2026 were cancelled after the Iran war began, prompting Strait of Hormuz closure. Iran’s Revolutionary Guard seized two ships near the strait on April 22, driving jet-fuel prices up 70 % to $200 per barrel and disrupting freight routes.

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Bahrain and Saudi Arabia contributed $100 million in hosting fees—26.7 % of Formula 1’s $3 billion revenue and $1.4 billion prize money. The 2026 cost cap rose to $215 million from $135 million plus inflation, so losing two high-paying rounds cuts prize-fund income while rising freight costs compete for cap space. Jet-fuel spikes have lifted freight expenses; teams may shift to air freight if Hormuz stays closed, raising costs and emissions.

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McLaren CEO Zak Brown said hope alone is insufficient and a strategic plan is needed. Racing Bulls principal Alan Permane highlighted the loss of prize money and cost savings from not traveling, calling the impact negative. Mercedes principal Toto Wolff said teams have modeled worst-case travel interruptions and remain hopeful for normalcy. The FIA has not announced cost-cap adjustments due to the conflict.

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Smaller teams warn rising freight costs could force cuts to car development, widening the gap with larger outfits. Sustainability advocates say increased air freight may undermine Formula 1’s environmental goals. No mitigation proposals have been presented, leaving teams uncertain about budget flexibility.

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The timetable for reinstating the Bahrain and Saudi Arabian races is undefined, and future freight cost increases remain unquantified. Analysts flag June as a possible inflection point for Hormuz disruptions, but no official forecast exists. The season resumes with the Miami Grand Prix on April 26, then Canada and Asian events; any reshuffle could extend the season past its current December 6 end.

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• “We obviously all hope that this (conflict) ends shortly,” — Zak Brown, CEO, McLaren Racing.

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• “But hope is not a great strategy. So you do need to have a strategy.” — Zak Brown, CEO, McLaren Racing.

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• “But like everyone in the world, we are hoping for a calming down of the situation and things becoming more like normal, so it wouldn’t impact us going forward.” — Toto Wolff, Mercedes team principal.

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• “Sustainability is always front of mind, but also making sure we get to each racetrack is first and foremost what’s most important.” — Zak Brown, CEO, McLaren Racing.

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• “There’s that old Mike Tyson adage, ‘everyone has a plan until they get thumped in the face,’” — Graeme Lowdon, Cadillac team principal.

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