Obegi Capital Research

Regional Impact

Country-by-country assessment • 16 nations • 4-dimension scoring
Countries Affected
16
Total Displaced
14.5M+
Tier 1 (Severe)
3
Population at Risk
692M

Tier 1: Catastrophic Impact (9-10)

Iran

Overall: 10/10 • Economic: 10 • Humanitarian: 10 • Political: 10 • Military: 10 • GDP: -35% • Displaced: 5.0M (pop. 88M)

Direct target of sustained strikes. Nuclear and military infrastructure destroyed. Hormuz closure cuts own oil exports to zero. Economy in freefall. Civilian infrastructure degraded. Internal protests meet regime crackdown.

Key risks: Regime collapse • Nuclear breakout attempt • Mass internal displacement • Healthcare system collapse

Iraq

Overall: 10/10 • Economic: 10 • Humanitarian: 9 • Political: 10 • Military: 8 • GDP: -40% • Displaced: 3.0M (pop. 43M)

98% of government revenue comes from oil exports through the Gulf. Hormuz closure and Gulf infrastructure damage effectively bankrupts the state. PMF activation fractures the country along sectarian lines. US bases attacked.

Key risks: State collapse • Sectarian civil war resurgence • Government bankruptcy • ISIS resurgence in power vacuum

Lebanon

Overall: 9/10 • Economic: 9 • Humanitarian: 9 • Political: 9 • Military: 8 • GDP: -25% • Displaced: 1.5M (pop. 6M)

Hezbollah activation brings Israel into direct conflict with Lebanon again. Country already in economic collapse since 2019. Infrastructure devastated. Syrian refugees displaced again. Port of Beirut (rebuilt) targeted.

Key risks: Full Israeli invasion • Complete economic collapse • Government dissolution • Mass displacement to Syria/Cyprus/Turkey

Tier 2: Severe Impact (7-8)

UAE

Overall: 8/10 • Economic: 8 • Humanitarian: 6 • Political: 7 • Military: 7 • GDP: -15% • Displaced: 0.2M (pop. 10M)

Jebel Ali port (9th largest globally) and Fujairah oil terminal struck by Iranian missiles. Dubai's financial center disrupted. Foreign workers evacuate. Aviation hub (Emirates, Etihad) grounded. Real estate market collapses.

Key risks: Port infrastructure destruction • Foreign capital flight • Aviation shutdown • Real estate crash

Saudi Arabia

Overall: 8/10 • Economic: 8 • Humanitarian: 5 • Political: 6 • Military: 7 • GDP: -12% • Displaced: 0.1M (pop. 36M)

Aramco facilities (Abqaiq, Ras Tanura) hit again, worse than 2019 Abqaiq attack. Oil production drops 5-7M bbl/day. Revenue crisis despite high prices (can't export). Vision 2030 derailed. Mega-projects frozen.

Key risks: Aramco infrastructure destruction • Oil export blockade • Vision 2030 collapse • Houthi escalation from Yemen

Israel

Overall: 7/10 • Economic: 5 • Humanitarian: 6 • Political: 5 • Military: 10 • GDP: -5% • Displaced: 0.1M (pop. 10M)

Multi-front war: Iran missiles, Hezbollah rockets (150K+ stockpile), Gaza remnants, West Bank instability. Iron Dome overwhelmed by saturation attacks. Northern cities evacuated. Economy disrupted but resilient due to US support.

Key risks: Iron Dome saturation • Multi-front ground operations • Northern evacuation • Reservist economic disruption

Pakistan

Overall: 7/10 • Economic: 7 • Humanitarian: 7 • Political: 7 • Military: 5 • GDP: -6% • Displaced: 2.0M (pop. 230M)

Iran-Pakistan border tensions escalate. Baluchistan insurgency inflamed. Energy imports disrupted (Iran gas pipeline). Already fragile economy faces oil shock. Nuclear state stability concerns rise globally.

Key risks: Border conflict with Iran • Baluchistan insurgency escalation • Energy crisis (gas pipeline cut) • Economic collapse

Kuwait

Overall: 8/10 • Economic: 8 • Humanitarian: 5 • Political: 6 • Military: 6 • GDP: -30% • Displaced: 0.1M (pop. 4M)

Tiny, oil-dependent state directly in the firing line. Oil exports blocked. Iranian missiles can reach anywhere in the country. Memories of 1990 invasion trigger mass evacuation of foreign workers.

Key risks: Complete oil export shutdown • Direct missile vulnerability • Foreign worker evacuation • Financial reserves drawdown

Bahrain

Overall: 8/10 • Economic: 7 • Humanitarian: 5 • Political: 7 • Military: 7 • GDP: -20% • Displaced: 0.1M (pop. 2M)

Hosts US 5th Fleet. Prime target for Iranian retaliation. Shia majority population (75%) under Sunni monarchy creates internal instability risk. Oil production minimal but financial sector devastated.

Key risks: 5th Fleet base targeted • Sectarian unrest • Financial sector disruption • Iranian-backed internal destabilization

Qatar

Overall: 7/10 • Economic: 7 • Humanitarian: 3 • Political: 5 • Military: 5 • GDP: -15% • Displaced: 0.1M (pop. 3M)

World's largest LNG exporter. Al Udeid Air Base (largest US base in ME) makes it a target. LNG exports through Hormuz disrupted. Gas revenue drops sharply. But massive sovereign wealth fund ($450B+) provides buffer.

Key risks: LNG export disruption • Al Udeid base targeted • Revenue collapse • Diplomatic mediation role complicated

Tier 3: Significant Impact (5-6)

Turkey

Overall: 6/10 • Economic: 6 • Humanitarian: 5 • Political: 6 • Military: 4 • GDP: -4% • Displaced: 0.5M (pop. 85M)

Already hosting 4M+ refugees; new wave from Iraq and Syria. Kurdish separatism resurges as regional chaos creates opportunity. Energy imports disrupted (Iraq pipeline). NATO Article 5 tensions if conflict spreads to Turkish territory.

Key risks: Refugee wave (additional 2M+) • Kurdish insurgency resurgence • Energy supply disruption • NATO alliance strain

Egypt

Overall: 5/10 • Economic: 6 • Humanitarian: 5 • Political: 5 • Military: 3 • GDP: -3% • Displaced: 0.2M (pop. 105M)

Suez Canal traffic surges then drops as global trade contracts. Tourism collapses. Food imports (wheat) face price shock. Already-struggling economy pushed toward IMF emergency funding. Red Sea instability from Houthis affects Suez revenue.

Key risks: Suez revenue volatility • Food price crisis • Tourism collapse • Social unrest from inflation

Jordan

Overall: 5/10 • Economic: 6 • Humanitarian: 5 • Political: 5 • Military: 3 • GDP: -4% • Displaced: 0.3M (pop. 11M)

Buffer state absorbs refugees from Iraq and Syria (again). Energy-poor, import-dependent. Oil price shock devastating. Iraqi trade routes disrupted. Palestinian solidarity protests create internal pressure.

Key risks: Refugee wave from Iraq • Energy import crisis • Trade route disruption • Domestic unrest

Syria

Overall: 6/10 • Economic: 5 • Humanitarian: 7 • Political: 7 • Military: 4 • GDP: -5% • Displaced: 0.5M (pop. 22M)

Iranian-backed militias activate from Syrian territory. Israeli strikes on Syrian positions. Already-devastated country faces renewed conflict. Refugees displaced again (for the 3rd or 4th time). Russian base at Tartus complicated.

Key risks: Renewed Israeli strikes • Militia activation • Re-displacement of refugees • Russian military involvement question

Yemen

Overall: 6/10 • Economic: 4 • Humanitarian: 8 • Political: 6 • Military: 6 • GDP: -8% • Displaced: 1.0M (pop. 33M)

Houthis escalate Red Sea attacks to full blockade. US/UK strikes on Yemen intensify. Already the world's worst humanitarian crisis, it deteriorates further. Food aid deliveries blocked. Civilian casualties mount.

Key risks: Full Red Sea blockade • Intensified US/UK strikes • Aid delivery collapse • Famine escalation

Oman

Overall: 5/10 • Economic: 5 • Humanitarian: 3 • Political: 4 • Military: 3 • GDP: -5% • Displaced: 0.0M (pop. 5M)

Traditional mediator role fails. Muscat talks collapsed (Feb 6). Non-Hormuz oil export routes partially available but insufficient. Tourism and trade disrupted. Relatively stable but economically exposed.

Key risks: Mediation failure • Oil export partial disruption • Trade disruption • Regional instability spillover

Proxy Network Fragmentation

What Happens When Central Command Breaks

Iran's proxy network (Hezbollah, PMF, Houthis, Hamas remnants, Syrian militias) has operated under loose IRGC Quds Force coordination.[6] Under worst case, sustained strikes degrade this command structure. The paradox: individual proxy groups become more unpredictable, not less dangerous. Without Tehran's moderating influence on timing and targeting, each group escalates according to its own logic and survival instincts.[23]

Historical parallel: post-Soleimani (January 2020), proxy attacks actually increased in frequency despite the loss of the coordinating figure. The network proved resilient precisely because it was never fully centralized.[26]

Sources

  1. FDD, 'Iran's Proxy Network: Capabilities and Command Structure', 2024
  2. IMF, 'Regional Economic Outlook: Middle East and Central Asia', October 2025
  3. UNHCR, 'Middle East Displacement Patterns and Projections', 2025
  4. LSE Middle East Centre, 'Iran's Regional Influence After Military Strikes', 2024
  5. Journal of Conflict Resolution, 'Proxy War Dynamics and Escalation Risks', Vol. 68(3), 2024
  6. UNHCR, 'Global Trends in Forced Displacement 2024', 2025
  7. Internal Displacement Monitoring Centre, 'Middle East Displacement Report 2025', 2025
  8. World Bank, 'Iraq Economic Monitor: Oil Revenue Dependency and Fragility', 2025
  9. IMF, 'Lebanon: Staff Report for the 2025 Article IV Consultation', 2025
  10. Dubai Financial Market, 'UAE Economic Diversification and War Risk', 2025
  11. Pakistan Bureau of Statistics, 'Energy Import Dependency Report', 2025
  12. Central Bank of Turkey, 'External Vulnerability Assessment', Q4 2025