The Aporia
Qatar experienced its largest quarterly budget deficit since 2016 due to disruptions caused by the Iran war, resulting in a $5.8 billion shortfall for the second quarter. The conflict has severely impacted Qatar's liquefied natural gas (LNG) exports through the Strait of Hormuz, leading to an almost doubling of its previous quarter’s budget deficit to 21.2 billion riyals. Despite this, some Qatari LNG tankers are moving towards the Gulf, indicating expectations that export shipments might soon resume.
Fitch Ratings has affirmed Qatar's AA sovereign rating but maintains a "negative" outlook due to continued disruptions in exports through Hormuz. Qatar’s financial stability remains robust with accumulated sovereign assets exceeding twice its GDP and relatively low government debt levels.