Any kind of instability in the Middle East tends to send up oil prices, and the longer prices stay high, the more likely it is that it will cost more to fill up your tank. So far, oil and gas markets have been taking the crisis in their stride.
Qatar is the world’s biggest LNG exporter with a lot of pipelines in the Gulf and could retaliate but cutting off supplies to its neighbors. This could lead to major shortage of energy.
The diplomatic crisis is also the latest complication for the 2022 World Cup, which Qatar is preparing to host. If the travel restrictions remain in place long term, they could keep supplies, workers and eventually soccer fans from moving freely in and out of the country.
The tournament is already facing allegations of worker misconduct, and it had to slash the budget for the soccer tournament by more than 40% because of the falling price of oil.
Qatar Airlines is a major global airline but it can no longer use the airspace above Saudi Arabia, Egypt, Bahrain and the UAE. That means flights to Africa and North America may have to make big detours — raising fuel costs, flight times and potentially ticket prices.
