Qatar’s LNG exports and public finances have deteriorated sharply after a US-Iran conflict in late February 2026 disrupted shipping through the Strait of Hormuz, the main route for its gas shipments. The second-quarter budget deficit reached 21.2 billion riyals, or about $5.8 billion, nearly double the first-quarter shortfall and lifting the first-half gap to 31.5 billion riyals, above the full-year projection of 21.8 billion riyals. LNG exports fell from about 20 million tons to less than 2 million tons, while energy revenue represents roughly 80% of government revenue. During the disruption, Qatar and the UAE used emergency ship-to-ship LNG transfers off Oman and the UAE to keep cargoes moving to Asia. Three August cargoes were transferred between vessels, including cargoes from QatarEnergy-run Al Rekayyat and GasLog Shanghai after vessel incidents, and an ADNOC-controlled Mraweh cargo loaded at Das Island. The operations can take 30 to 35 hours and add more than $1 million, or €860,600, to a voyage. QatarEnergy remains under force majeure on some deliveries, with cancellations extending into early November, while Qatar and Iran have discussed a temporary shipping corridor and mine-clearing project. Fitch Ratings later removed Qatar from negative watch status but retained a negative outlook over export uncertainty; the newer report says Fitch took that action in September 2026, while the earlier report described it as occurring on Friday.