"Gulf States Face $200 Billion in Direct Damage from Iran War": Allianz

[Financial News]  

Insurance company Allianz Trade said in a report on the 11th (local time) that direct damage to Gulf states from the war between the United States and Iran is estimated at $200 billion (about 267 trillion won).
According to CBS News, Allianz warned that extending the estimate through 2030 would bring the cumulative economic losses to nearly four times as much, or $790 billion, due to the economic fallout.
For several weeks after the United States and Israel began airstrikes on Iran on February 28, Gulf states hosting U.S. military bases came under Iranian retaliatory attacks every day.
In its report, Allianz said, "Material damage is estimated at slightly more than $200 billion," adding that it was "mainly due to economic harm caused by the blockade of the Strait of Hormuz and strikes on energy infrastructure."
According to the report, around 80 energy facilities, mainly in Kuwait, Qatar and Bahrain, were damaged in the war. Allianz also assessed that "one-third of them suffered severe damage."
Along with the physical damage to energy infrastructure, the war also hit other sectors, including tourism and real estate, and growth in these countries was expected to slow over several years as a result.
The report said, "The total cost of this war for member states of the Gulf Cooperation Council (GCC) could reach $790 billion," adding, "Compared with pre-war growth trends, this means a loss equivalent to 5.9% of GDP by 2030."

[email protected] Song Kyung-jae Reporter