India, Oct. 25 -- Eight months after the United States and Israel launched strikes against Iran that set off the most disruptive regional conflict since the 1990 Gulf War, the six economies of the Gulf Cooperation Council are navigating a paradox that their planners never anticipated: the very crisis that is straining their oil-dependent fiscal models is simultaneously proving the case for the diversification strategies they spent a decade building.

IMF Regional Outlook findings released on 22 October 2026 point to a 1.3 per cent contraction across the Middle East, North Africa and Pakistan this year as the Iran war continues to disrupt energy production, shipping, tourism and international trade.

The International Monetary Fund expects...