The Strait of Hormuz remains the fulcrum of regional risk. A sustained disruption to shipping lanes would pressure trade finance volumes, tighten wholesale funding access, and force a repricing of liquidity buffers that most institutions have not stress-tested against a simultaneous oil and logistics shock. Against this backdrop, GCC banks enter the second half of the decade with aggregate capital ratios comfortably above every supervisory floor in the region — but the dispersion beneath the headline is significant. Several banking sectors hold fortress CET1 positions north of 16%, while others operate with single-digit headroom above regulatory minimums and leverage ratios that leave limited room for error. Profitability remains structurally sound, with sector ROE averaging above 13%, though margin compression is emerging as the rate cycle turns and cost-to-income ratios diverge by as much as 15 percentage points across markets. Liquidity coverage is broadly adequate, yet structural funding gaps persist — select issuers report NSFR below the 100% regulatory floor, and securities encumbrance ratios exceeding 70% in one market constrain collateral capacity at precisely the moment it may be needed most. On asset quality, reported NPL ratios remain benign, but Stage 2 concentrations of 20–26% at certain names signal watchlist migration risk that has not yet surfaced in headline impairment charges. Should the conflict persist, the areas to watch are threefold: wholesale funding dependency in markets most exposed to shipping disruption, the adequacy of HQLA buffers net of encumbered securities, and the speed at which Stage 2 migration translates into provisioning pressure for banks carrying elevated cost-of-risk sensitivity. The forty issuers below each carry a different answer to these questions.