Middle East Newsletter: Oil’s Surge Boosts Gulf Economies

An offshore drilling platform at an oilfield operated by Saudi Aramco

Photographer: Simon Dawson/Bloomberg

A global gas shortage and end economic rebound are boosting demand for oil, buoying Gulf states whose economies depend on the fossil fuel.

Brent Crude has rallied 60% this year, filling Saudi Arabia’s coffers. The kingdom, OPEC’s biggest producer, is earning more money from oil exports than any time since 2018.

However, there’s growing anxiety among key energy-consuming nations as prices also rise for commodities such as natural gas, food and metals, triggering a rise in inflation that could derail the recovery.