Iran fires missiles, drones across Gulf, region remains in war crosshairs

Iran significantly escalated attacks on civilian infrastructure and transport networks across the Gulf on Wednesday, targeting commercial ships and Dubai's international airport. These actions occurred as US and Israeli warplanes launched new strikes. The UAE, particularly Dubai, has borne the brunt of these attacks, facing an existential threat as foreigners flee. The escalation has caused oil prices to rise above $100 a barrel, with Iran threatening a long "war of attrition." Meanwhile, a review revealed the US defense secretary has voiced extreme antipathy towards Iran for years. A bill addressing the situation has passed the House, but lacks the necessary votes in the Senate due to filibuster rules.

The article analyzes the escalating conflict between Iran, the US, and Gulf nations in March 2026, highlighting its impact on regional stability and economies. Increased Iranian missile and drone attacks are disrupting trade, forcing airlines to reroute, and causing foreign investors to question the safety of investments in Gulf cities like Dubai and Doha. The conflict intensified after the 2020 US assassination of Iranian commander Qassem Soleimani, leading Iran to become more cautious but also raising questions about the effectiveness of US military bases in deterring Iran. The war challenges the Gulf states' economic model, which relies on regional stability to attract global investment. The potential for further escalation between Iran and the US remains a concern.

In March 2026, a woman was killed in Bahrain during an Iranian attack, part of escalating tensions in the Gulf region. Several Gulf states, including Saudi Arabia, Kuwait, and the UAE, intercepted Iranian missiles and drones. Bahrain reported intercepting a large number of projectiles, while Saudi Arabia and Kuwait also downed drones. The attacks, which included strikes on energy infrastructure, occurred amid a US-Israeli war on Iran. US President Trump threatened increased attacks on Iran if it attempts to close the Strait of Hormuz, a vital oil transit route. These events have led to rising oil prices and regional instability.

Recent Iranian attacks in the Gulf have expanded beyond traditional oil and gas infrastructure to include data centers, signaling a shift in targeting strategic assets. On March 1st, drone attacks damaged three Amazon Web Services data centers in the United Arab Emirates and Bahrain. These attacks suggest a deliberate effort to undermine the Gulf's post-oil future, particularly its ambitions in artificial intelligence. The region's AI investments, supported by partnerships and cloud providers, rely on cheap and reliable power, which is now threatened. This new focus on data centers poses a risk to the Gulf's economic diversification efforts.

On March 2, 2026, Iran's retaliatory strikes against US assets in the Gulf region entered their third day, escalating fears of a prolonged conflict. Explosions were reported in Dubai, Doha, and Kuwait, with Kuwaiti air defenses intercepting drones near residential areas. Iran stated the attacks were in response to ongoing US-Israeli strikes on Iran, targeting US military assets and impacting civilian areas across Gulf cities. Bahrain activated air raid alerts and closed a major bridge. Casualties have been reported in Kuwait, the UAE, and Qatar, while US-Israeli attacks have resulted in significant casualties in Iran and Israel. The US, Bahrain, Jordan, Kuwait, Qatar, Saudi Arabia, and the UAE jointly condemned Iran's attacks and affirmed their right to self-defense.

Multiple Gulf nations, including the UAE, Saudi Arabia, Qatar, and Kuwait, reported missile and drone attacks on Saturday. These attacks occurred despite an earlier apology from the Iranian president to Gulf countries, where he stated they would not be targeted unless strikes originated from their territory. Hours later, Iran declared its intent to continue strikes on sites within Gulf countries it considered to be at the disposal of its enemies. The UAE's president acknowledged the country was in "a period of war." Dubai authorities reported one death, a Pakistani national, resulting from debris from an aerial interception. Kuwait's national oil company announced a precautionary cut to production.

Iranian missiles struck multiple locations across the Arab Gulf states, including Dubai and Abu Dhabi, marking a significant escalation of regional conflict. The attacks damaged infrastructure, including airports and hotels in Dubai, demonstrating Iran's capability to strike US allies in the region. These strikes, according to analysts, aim to deter Gulf states from supporting potential US or Israeli actions against Iran. The attacks highlight the vulnerability of Gulf nations and underscore Iran's willingness to "internationalize the battlefield," bringing the conflict directly to its neighbors. This development is likely to strengthen Arab rulers' support for potential US-Israeli strikes.

Dubai residents and tourists were shaken when Iranian missiles and drones approached the Gulf states over the weekend, triggering air defenses in the UAE, Qatar, Saudi Arabia, and Bahrain. Many initially mistook the interceptors for fireworks, as Dubai attempted to maintain its image of stability amidst regional conflict. While some residents received official alerts, others were caught off guard. Fires and smoke were reported at Dubai and Abu Dhabi airports due to drone debris, resulting in one death and several injuries. Smoke was also seen at the Jebel Ali port area in Dubai, one of the busiest ports in the Middle East. The incident challenged Dubai's long-held perception as a safe haven insulated from regional political turmoil.

Following drone attacks on U.S. embassies in Saudi Arabia and Kuwait, the U.S. State Department has closed its embassies in those two countries. The State Department also issued an urgent advisory, recommending that American citizens immediately depart from 14 unspecified countries. These actions come as tensions escalate in the region, with Iran reportedly increasing retaliatory measures. Simultaneously, the Israeli military announced it has seized additional territory in Lebanon amidst ongoing conflict with Hezbollah, which is backed by Iran. The closures and travel advisory highlight growing concerns about the safety of American personnel and citizens in the Middle East.

Oil prices surged after the reported death of Iranian leader Ayatollah Ali Khamenei in US-Israeli air strikes, escalating conflict between the US, Israel, and Iran. The Strait of Hormuz, a critical oil transit route, experienced near standstill, impacting tanker traffic. This disruption raised concerns about supply shortages and increased import costs, particularly for Asian economies like China, India, Japan, and South Korea, which heavily rely on oil imports. Benchmark Brent crude jumped significantly, reflecting market fears of sustained supply disruption. Iran retaliated with attacks on US military bases in Bahrain, Kuwait, and Qatar, further escalating geopolitical tensions in the region.

As of March 5, 2026, a war in Iran has sparked a global oil and gas crisis, potentially benefiting the United States and other Western exporters. The crisis stems from disruptions in the Strait of Hormuz, a vital shipping route for oil and LNG, and attacks on energy infrastructure in Gulf countries. Iran's Islamic Revolutionary Guard Corps (IRGC) declared the Strait "closed" after several tankers were damaged, causing oil and gas prices to surge. Approximately 150 ships are stranded, and about 10% of the world's container ships are caught in backups, potentially leading to cargo pile-ups in Europe and Asia. Qatar's energy infrastructure has also been attacked, further exacerbating the crisis.

Escalating conflict involving Iran and the US/Israeli attacks is disrupting oil and gas supplies in the Middle East, driving up global prices. Iran has launched strikes against oil facilities and shipping in the region, particularly impacting the Strait of Hormuz, a critical waterway for approximately 20% of the world's oil supply. Shipping traffic through the strait has significantly decreased due to safety concerns, with several tankers damaged and at least one fatality reported. Consequently, the price of oil initially surged by over 10%, and experts predict further increases if the conflict continues, potentially reaching $100 per barrel.

On February 28, 2026, Iran confirmed retaliatory attacks on US assets located in Gulf Arab states, including Bahrain, Kuwait, Qatar, and the United Arab Emirates, following a joint US-Israeli attack on Iran. The Islamic Revolutionary Guard Corps (IRGC) claimed responsibility, stating that all US and Israeli military targets in the Middle East were struck. Bahrain reported an attack targeting the US Navy's 5th Fleet headquarters, while Kuwait experienced explosions near the US military's Central Command headquarters. Qatar's Defense Ministry stated it intercepted missiles before they reached Qatari territory. The UAE reported at least one death in Abu Dhabi after intercepting missiles launched from Iran.

Iran launched missiles and drones targeting Israel and US military installations in Bahrain, Kuwait, and Qatar in response to recent attacks by the US and Israel. The Iranian Foreign Ministry stated the action was in defense of the homeland. The UAE and Iraq closed their airspace, and shrapnel from an Iranian missile killed one person in the UAE. Israel issued a nationwide warning and activated its missile defense systems to intercept incoming projectiles. There were initially few reports of damage or injuries in Israel.

A war launched by the US and Israel on Iran has rapidly escalated, spreading across the Middle East. On Saturday, Iran struck the Fairmont hotel in Dubai's Palm Jumeirah area, causing a fire and injuring four people. The attack on the Dubai hotel is part of a wider conflict that has sparked anxiety and concern throughout the region, with reports of explosions in Bahrain, Jordan, and Kuwait. The initial US-Israeli attack on Iran appears to be the catalyst for the escalating regional conflict. The reasons for the initial attack were not specified in this report.

Following reported strikes in Iran by the US and Israel, Australia's National Security Committee is convening. Foreign Minister Penny Wong stated Australia was not informed in advance of the strikes and has updated travel advice for Israel, Lebanon, Bahrain, Kuwait, Qatar, and the United Arab Emirates. A crisis center has been activated to provide consular support to Australians in the region, and a registration portal has opened for Australians in Iran and Israel. Wong emphasized Iran's destabilizing role in the region and stated that Australia did not participate in the strikes. The Australian government advises Australians in the affected region to follow travel advice and seek safety, acknowledging potential difficulties with repatriation due to airspace closures.

A fire at a hotel in Dubai's Palm Jumeirah area injured four people following a reported loud explosion on Saturday. The incident occurred amidst Iranian retaliatory strikes in the Middle East, though authorities have not explicitly confirmed a connection. The Dubai Media Office stated the fire was contained and the site secured, emphasizing public safety. Authorities are urging calm and advising the public to rely on official information sources. Emergency response teams responded to the incident, the cause of which remains unconfirmed by Dubai officials.