The Iran war is putting an estimated $124 billion in annual remittances from Gulf Cooperation Council countries at risk, testing an economic model reliant on foreign workers. Migrant workers in the six GCC nations sent that sum home in 2024, supporting families from Asia, Africa, and the broader Middle East. While almost all Iranian attacks were intercepted, the conflict disrupted travel and tourism, choked exports through the Strait of Hormuz, raised import costs, and strained supply chains, leading to job insecurity across sectors from hospitality to construction. Western Union reported an acceleration in outbound remittances from the Middle East during the early phase of the conflict, and India saw money sent home by overseas workers rise more than 28% in the three months through March. However, the Philippines recorded its slowest remittance growth in almost four years in April, and Kenya saw private transfers from Gulf states fall 18% in April after an initial surge, while cross-border payments platform Onafriq noted that average transaction values have fallen about 12% and an estimated 40% of senders are drawing from emergency reserves.
Western Union CoWestern Union reported an acceleration in outbound remittances from the Middle East during the early phase of the conflict
Apple Inc.Onafriq noted average transaction values have fallen about 12% and an estimated 40% of senders are drawing from emergency reserves