Qatar warns wider economic fallout from Iran war still ahead if Hormuz stays closed

The Qatari finance minister warned Wednesday that the full economic fallout from the Iran war will be felt in the coming months unless the Strait of Hormuz is reopened and trade restrictions are eased.

Speaking during a panel at the International Monetary Fund’s Spring Meetings in Washington, Ali bin Ahmed Al Kuwari said the rise in energy costs was only “the tip of the iceberg.”

“The full-fledged impact is coming in one or two months,” he said. “You’ll see a huge economic impact as a result of this war.”

He said continued disruption in the Strait of Hormuz would pose serious risks for countries dependent on imports of key commodities, including natural gas, fertilizers and helium.

Al Kuwari also said damage to Qatar’s Ras Laffan liquefied natural gas facility in March has worsened concerns about global energy supply.

The facility, which accounts for nearly one-fifth of global LNG exports, was hit as the war expanded following US airstrikes on Iran on Feb. 28, triggering a global gas supply crunch.

It could take around five years to fully restore the damaged facilities and exports, he said.

Al Kuwari warned that helium exports were also at risk, noting that Qatar supplies about 30% of the world’s helium, a critical input for sectors, including chip manufacturing.

He said the energy price shock could eventually turn into broader shortages, with some countries facing difficulties securing enough energy supplies, while fertilizer disruptions could also raise the risk of a food crisis.

The warning comes as the closure of the Strait of Hormuz continues to disrupt one of the world’s most important energy trade routes, heightening concerns about prolonged supply shocks across fuel, industrial gas and agricultural input markets.