Supply chains have been severely disrupted, and insurance and shipping costs have skyrocketed as a result of the Middle East conflict, businesses across the Gulf Cooperation Council (GCC) have confirmed.

The Federation of GCC Chambers issued an official statement following an emergency meeting chaired by Qatar’s Sheikh Khalifa bin Jassim bin Mohammed Al-Thani on Monday, expressing fears that the "senseless" attacks on Gulf states could lead to higher consumer prices and a significant slowdown in the global economy.

The regional body, which represents the private sector of all six GCC member states - the UAE, Saudi Arabia, Qatar, Bahrain, Kuwait and Oman - discussed measures to mitigate the economic impact of the attacks, which they also condemned as "senseless", having "terrorised" residents across the Gulf.

The measures include "logistical alternatives" like the so-called "Gulf land bridge" to bypass the Strait of Hormuz, as well as economic and administrative actions, according to the Qatar News Agency.

Economic fallout

Now on its third week, the conflict has severely strained the private sector, with the closure of the Strait of Hormuz leading to major bottlenecks in the global shipping traffic and hindering the movement of goods. Major suppliers, particularly those based in the GCC, have so far declared force majeure on exports, as they can no longer guarantee delivery to various markets.

Ticket and transport costs have likewise surged due to rerouting, and businesses have started passing the costs on to consumers and clients. Among the latest to introduce new add-ons to cover the "costs of war", Oman Air Cargo on Monday said it is introducing fuel and "war risk" surcharges.

Hapag-Lloyd had also imposed a war risk surcharge of $1,500 per TEU and $3,500 for reefers, special containers for all UAE, Saudi and Qatar bookings. Maersk for its part introduced an emergency bunker surcharge effective March 25, 2026. 

Solutions, administrative actions

During their meeting on Monday, the Federation of GCC Chambers talked about activating and expanding land routes to ensure the flow of goods; redirecting maritime traffic to ports on the Arabian Sea and utilising overland transport to move cargo into the interior; and pushing for the completion of the GCC Railway project and extending oil pipelines to the Red Sea.

The federation also discussed the creation of a permanent working group for crises and emergencies; a unified shipping pricing mechanism to counter unfair rate hikes and facilitating procedures for the entry of goods to prevent port congestion.

(Writing by Cleofe Maceda; editing by Seban Scaria) seban.scaria@lseg.com