Gulf Cooperation Council (GCC) economies are sliding into their worst economic crisis since the pandemic, with several expected to contract this year on spillovers from the U.S.-Israel war with Iran right on its doorstep. The war's knock-on effects have ripped through the energy market – the Gulf economies' lifeline – driving oil prices sharply higher and triggering a historic supply shock, drawing comparisons to the 1970s. As a result, economists slashed 2026 growth forecasts in the April 8–24 poll, with some countries swinging from expected growth to outright contraction. A partial rebound is due next year.