Gulf boycott raises Lebanon economic risks

Significance

They have failed to convene cabinet for more than a month amid a row over how to resolve a break in diplomatic relations with former Gulf allies. Measures taken by Saudi Arabia, Kuwait, the United Arab Emirates (UAE) and Bahrain are damaging the already failing economy.

Impacts

• Increased Iranian support for Shia forces in Lebanon could provoke further US sanctions.
• The Saudi import ban will hit the agricultural sector hard.
• Any flight bans would make it more difficult and costly for Lebanese nationals to travel to the Gulf.