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- Gulf Energy Loses $16B; Air Freight Surges; Sovereign Funds Reassess Investments
Gulf Energy Loses $16B; Air Freight Surges; Sovereign Funds Reassess Investments
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Saturday, March 14, 2026
Happy and Safe Saturday everyone!
Iran’s attacks on Gulf Countries are beginning to ripple through the region’s economy. Air freight rates have surged from $2.57 to $4.37 per kilogram as disrupted routes and rising risk premiums hit global logistics. At the same time, Gulf energy revenues have taken a $16 billion hit in just 14 days amid market volatility and operational disruptions. Behind the scenes, governments are also reassessing strategy: a Gulf official told Reuters that several sovereign wealth funds are reviewing how trillions of dollars in global investments are deployed if the conflict drags on.
In the wake of developments in the region, we hope everyone stays safe. At this critical moment, it is essential to remain united and follow guidance issued by official authorities from your country.
Markets
EGX30 | 46,916.75 | Closed |
DFMGI | 5,426.28 | 1.664% |
ADX | 9,480.14 | 1.613% |
Tadawul | 10,891.20 | Closed |
QE Index | 10,485.94 | Closed |
Air Freight Rates Jump: From $2.57 to $4.37 Per Kg
Air freight rates have surged sharply as the conflict enters Day 14 of Iran's attacks on Gulf neighbours after US-Israeli joint strike on the Iranian sovereign territory. Spot cargo prices from South Asia to Europe have jumped from $2.57 to $4.37 per kilogram, according to data from Freightos, as airlines reroute flights and shipping disruptions push companies to shift cargo from sea to air.
Why It Matters?
The rate spike reflects tightening cargo capacity as airlines avoid Middle Eastern airspace and take longer routes. At the same time, more than 100 container ships remain stranded near the Strait of Hormuz, forcing companies to move critical goods — including pharmaceuticals and electronics — by air. Air freight carries roughly one-third of global trade by value, meaning sustained price rises could drive broader inflation in goods.
What’s Next?
Industry analysts say rates may remain volatile as airlines gradually restore flights and adjust routes around the conflict zone. Gulf cargo hubs such as Dubai International Airport and Hamad International Airport are slowly resuming operations, which could ease pressure on capacity. However, logistics experts warn costs will stay elevated if airspace restrictions, high jet fuel prices and disrupted shipping lanes persist.
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Gulf Energy Revenues Hit: $16B Lost in 14 Days
Gulf oil exporters are facing mounting revenue losses as energy shipments through the Strait of Hormuz remain severely disrupted amid the ongoing regional conflict.
Why It Matters?
Shipping data from analytics firm Kpler shows that crude oil and liquefied natural gas flows through the strait are worth roughly $1.2 billion per day, highlighting the scale of financial exposure for Gulf producers when exports slow or stop. That means nearly $16 billion has been lost in the 14 days following Iran’s attacks on Gulf neighbours, starting February 28. The waterway normally carries around one-fifth of the world’s oil supply, making it one of the most critical energy chokepoints in global trade.
What’s Next?
With tanker traffic collapsing and insurers wary of attacks, analysts warn that Gulf states could face billions of dollars in lost energy revenues if the disruption continues, as crude shipments remain stranded and alternative export routes struggle to handle the volumes.
Gulf Sovereign Funds Reassessing: Official Tells Reuters
Three of the Gulf’s largest economies are reviewing how trillions of dollars in sovereign wealth fund investments are deployed to offset losses from the U.S.-Israeli war on Iran, a Gulf official told Reuters. “A review of their sovereign wealth fund investment strategies has already started,” the official said, speaking on condition of anonymity.
Why it Matters?
The reassessment comes as the conflict has hit aviation, tourism, ports, and logistics in just 12 days. The region’s sovereign funds—UAE’s ADIA and Mubadala, Saudi Arabia’s PIF, Kuwait’s KIA, and Qatar’s QIA—hold combined assets of roughly $5 trillion.
What’s Next?
Analysts say while global assets are unlikely to be sold immediately, new overseas commitments could slow, with some funds evaluating whether capital should be redirected locally. Despite the review, the UAE and Saudi Arabia say long-term investment plans remain unchanged.
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👨💻From Smashi Business’ Desk
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🗓️ Plan Your Events (March-April 2026)
UAE
31 March - 2 April (Tuesday-Thursday): Arab Media Summit, Dubai.
26-28 March (Thursday-Saturday): Social Capital Conference, Dubai.
7-9 April (Tuesday-Thursday): Future Health Summit, Adnec Center Abu Dhabi.
13-15 April (Monday-Wednesday): AIM Congress, Dubai World Trade Center.
14-16 April: (Tuesday-Thursday): the International Property Show, Dubai World Trade Center.
Saudi Arabia
13-16 April (Monday-Thursday): Leap Tech Conference, Riyadh Exhibition & Convention Center - Malham.
20-22 April (Monday-Wednesday): Sports Investment Forum (SIF), Riyadh
Egypt
30 March – 1 April (Monday-Wednesday): Egypt International Energy Conference and Exhibition (EGYPES).
