In its report titled “Conflict and Its Implications: Escalating Crisis in the Arab Region,” ESCWA said initial losses reached approximately $63 billion within the first two weeks alone, reflecting the rapid and widespread economic fallout of the escalation.

Shipping activity through the Strait of Hormuz has dropped by nearly 97%, leading to daily cargo losses estimated at $2.4 billion and cumulative trade losses of around $30 billion over two weeks.

Meanwhile, between February 28 and March 12, nearly 19,000 flights were canceled across nine major regional airports, resulting in airline revenue losses of approximately $1.9 billion.

The report notes that the region entered the crisis with limited resilience. Before the escalation, around 210 million people, 43% of the population, were already living in conflict-affected areas, including 82 million in need of humanitarian assistance.

In 2025, Gulf Cooperation Council countries contributed approximately $4.4 billion in aid, accounting for about 43% of total humanitarian assistance to affected states.

Energy-importing economies are expected to face additional challenges. With oil prices at $100 per barrel, countries such as Tunisia, Lebanon, and Egypt could see an additional $6.8 billion in annual import costs compared to 2026 budget projections, further straining public finances.

Lebanon is identified as one of the most vulnerable. ESCWA warns that continued escalation could sharply increase economic losses as infrastructure, trade, and essential services come under pressure.

The country’s economy has already contracted by nearly 40% since 2019. As of March 11, the conflict had resulted in 634 deaths and displaced around one million people, exacerbating an already difficult humanitarian situation.

ESCWA cautioned that prolonged conflict could overwhelm fragile economies, particularly those with limited fiscal space, heavy reliance on imports, and humanitarian pressures.