2026 Energy Economics: Iraq and Gulf Between Calculated Gains and Export Challenges Amid Hormuz Crisis

The 2026 energy landscape is gripped by high oil prices reaching $130 per barrel due to the closure of the Strait of Hormuz. While 2026 data shows Iraq could gain $49.5 billion on paper, the physical inability to export through the strait leads to a projected 8.6% economic contraction in 2026. Saudi Arabia leverages its West-East pipeline to mitigate risks, while Iran faces severe 2026 inflation and contraction despite higher prices. Meanwhile, 2026 forecasts for Algeria and Libya show moderate growth as they remain outside the direct 2026 conflict zone, benefiting from the global price surge in 2026.