Arab Countries Suffer Major Losses, Hit with Rp 986 Trillion Bill
The war involving Iran has triggered substantial losses in the Middle East region. The total cost of infrastructure repairs is estimated to exceed US58billion, equivalenttoRp986trillion(exchangerateRp17, 000/US).
This was revealed in the latest report from energy research firm Rystad Energy. The analysis indicates that the most significant damage has occurred in the oil and gas sector, valued at US$50 billion or approximately Rp 850 trillion.
The conflict, involving US-Israel attacks and retaliatory actions from Tehran, is said to have exacerbated damage to vital energy facilities in the region. Nevertheless, the primary challenge is not merely funding.
Rystad assesses that there are limitations in global capacity for supplying equipment and engineering services. This becomes the greatest obstacle, potentially delaying the recovery process for years.
“Repair work does not create new capacity. Such work diverts existing capacity, and this diversion will be felt in project delays and inflation far beyond the Middle East,” said senior analyst Karan Satwani, as quoted by RT on Friday (17/4/2026).
“The US$58 billion bill is the headline, but the domino effect on global energy investment schedules may prove equally significant,” he added, noting that the conflict’s impacts could spread globally.
Rystad also estimates that the average repair expenditure needs will be around US$46 billion or approximately Rp 782 trillion. The most severe damage stems from downstream refining and petrochemical assets, which are highly complex.
Meanwhile, other industrial sectors such as power plants and desalination facilities are expected to add costs of US$3 billion to US$8 billion (Rp 51 trillion-Rp 136 trillion). Recovery times vary between countries.
Iran has suffered the most severe impacts. The cost of damage to gas processing, refining, and energy export infrastructure is estimated at US$19 billion or approximately Rp 323 trillion.
On the other hand, Qatar has experienced more focused but technically complex impacts, particularly at the Ras Laffan LNG centre. Repairs in this area could conflict with ongoing expansion projects.
Amid the damage, Iran plans to demand compensation from five Arab countries: Bahrain, Jordan, Qatar, the United Arab Emirates, and Saudi Arabia. Iran’s Ambassador to the UN, Amir Saeid Iravani, considers these nations as “joint participants” in the conflict alongside the US and Israel.
The war’s impacts also extend to the civilian sector. The Iranian Red Crescent has recorded 125,630 affected units, including around 100,000 residential homes, some of which have been completely destroyed.
Additionally, 23,500 commercial properties have been damaged, along with 339 medical facilities, 32 universities, 857 schools, and 20 Red Crescent centres. Head of the Iranian Red Crescent, Pir Hossein Kolivand, stated that approximately 15 major logistics sites, such as fuel depots, airports, and civilian aircraft, have also been affected, exacerbating disruptions in transportation, energy, and public services on a broad scale.