By The South Asia Times

DUBAI - The ongoing US-Iran war has caused more than $200 billion in physical damage across the Gulf region, while cumulative economic losses could approach $790 billion by 2030, according to a new assessment by insurance company Allianz Trade.

In a report cited by AFP, the insurer said physical damage across the region was estimated at just over $200 billion, with the heaviest impact concentrated in economies affected by disruptions around the Strait of Hormuz, particularly their energy infrastructure.

More than 80 energy facilities have been hit during the conflict, mainly in Kuwait, Qatar and Bahrain, with approximately one-third suffering severe damage, the report said.

The economic impact highlights the wider consequences of the conflict for Gulf countries and international energy markets, particularly as attacks on commercial shipping and disruptions to oil transportation through the Strait of Hormuz continue to fuel uncertainty.

Meanwhile, Iranian Parliament Speaker Mohammad Bagher Ghalibaf has said China could play a significant role in ending the war and resolving what he described as Iran's “neither war nor peace” situation with the United States.

In an article published on the website of Iran's Supreme Leader, Ayatollah Mojtaba Khamenei, Ghalibaf highlighted Beijing's relations with both Tehran and Arab countries as an opportunity to strengthen regional stability and support a new regional order.

He said Iran's Supreme Leader had issued detailed instructions on relations with China and announced plans to establish a high-level body to coordinate and monitor strategic cooperation with Beijing.

The proposed body would focus on setting priorities, accelerating decisions and overseeing major areas of cooperation without replacing the responsibilities of existing government institutions.

At the same time, Iran's security chief Mohsen Rezaei said Tehran was waiting for a response from Washington to its seven conditions for peace talks, while dismissing speculation about ongoing negotiations.

Iranian officials have also warned that the conflict could worsen domestic energy shortages. Government spokesperson Fatemeh Mohajerani said damage to gas-processing facilities could lead to nationwide supply cuts during the coming winter if consumption remains high.

Oil markets have meanwhile remained volatile amid uncertainty over a possible ceasefire and continued attacks on shipping in the Strait of Hormuz. Brent crude rose to $92.01 a barrel on Wednesday, while US West Texas Intermediate reached $86.20.

Iran's army also reported that an oil tanker had struck a mine and caught fire in the strategic waterway, through which approximately one-fifth of the world's oil supply normally passes.

The growing damage to energy infrastructure, disruption to maritime trade and rising economic costs have increased pressure for diplomatic efforts to prevent further escalation.

Ghalibaf's remarks suggest Tehran sees China's diplomatic and economic influence as a potential avenue for ending the confrontation, although no breakthrough in negotiations between Iran and the United States has been announced.