Qatar, one of the world’s richest nations, is facing a severe economic crisis as the ongoing Iran war has effectively shut down the Strait of Hormuz, blocking its liquefied natural gas (LNG) exports for over two months. The closure has paralyzed the country’s main energy hub at Ras Laffan and halted operations at Hamad Port, cutting off both exports and essential imports. The International Monetary Fund (IMF) warns that Qatar’s economy could contract by 8.6 percent this year, while tourism and business confidence have sharply declined amid regional instability.

Qatar’s prosperity has long depended on natural gas, which accounts for more than 60 percent of its revenue. Since the 1990s, the country transformed itself through massive LNG exports, funding modern infrastructure and global investments worth $600 billion. However, missile and drone attacks on Ras Laffan have reduced production capacity by 17 percent, and analysts say recovery could take years even if the strait reopens.

Authorities are using subsidies to limit inflation and maintain stability, while S&P Global Ratings notes that Qatar’s large reserves can sustain essential services. Yet, the duration of the Hormuz closure remains the key uncertainty for the nation’s economic future.