Trade and connectivity in the Europe-Gulf strategic partnership
The Gulf Cooperation Council is the EU's sixth-largest trading partner, while the EU ranks as the GCC's second-largest trading partner, with bilateral trade in goods reaching €165.7 billion in 2025 and trade in services totaling €84.4 billion in 2024. The 2026 US-Israeli war with Iran exposed the vulnerability of the Strait of Hormuz and the Red Sea, transforming Gulf-Europe connectivity from a commercial priority into a strategic instrument of resilience and security. Flagship initiatives such as the EU-GCC Free Trade Agreement and the India-Middle East-Europe Economic Corridor have yet to move beyond political declarations.
Why it matters: The text frames trade and connectivity between Europe and the Gulf as a question of whether crisis-driven arrangements can be converted into permanent, well-financed institutional frameworks.