Qatar has launched its first international public bond offering of the year, raising $3 billion as the Gulf nation grapples with the fallout from US-Iran tensions disrupting its vital energy export revenues.

According to a person familiar with the matter, the bond issuance attracted more than $7.7 billion in orders at its peak, before demand settled to approximately $6.8 billion. The government sold bonds with five-year and ten-year maturities, with the shorter-dated notes priced at 55 basis points over US Treasuries and the longer-dated at 65 basis points over, both tightening roughly 30 basis points from their initial price guidance.

Shipping disruptions in the Strait of Hormuz have hit Qatar particularly hard, given the country's heavy reliance on that waterway for exporting liquefied natural gas, its most significant source of export income. Treasury data shows Qatar's oil and gas revenue collapsed to just $200 million in the second quarter, a steep drop from the $9 billion recorded in the first three months of the year.