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

On March 12, 2026, amidst the ongoing United States-Israel war on Iran, Iran launched missile and drone attacks targeting Gulf nations, causing significant disruption. Bahrain reported strikes on fuel tanks in Muharraq Governorate, prompting residents to stay indoors. Saudi Arabia intercepted drones aimed at the Shaybah oilfield and the embassies district, while Kuwait reported a drone attack on a residential building, wounding two. The United Arab Emirates responded to a missile threat, and a container ship was attacked near Jebel Ali. Jordan experienced sirens in all cities. These attacks have further destabilized global energy markets, with Brent crude prices rising sharply.

On Sunday, Kuwait, Saudi Arabia, and Qatar reported missile and drone attacks, as Iran vowed to continue strikes against neighboring Gulf countries. Qatar stated it was targeted the previous day by multiple ballistic and cruise missiles fired from Iran, most of which were intercepted. Saudi Arabia's defense ministry reported intercepting and destroying fifteen drones entering its airspace. Kuwait's military reported responding to hostile drones that penetrated its airspace, with fuel tanks at Kuwait's international airport being targeted. Kuwait's national oil company also announced a precautionary cut to production. These incidents mark the second week of escalating regional conflict.

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.

Iranian-designed Shahed drones, costing significantly less than traditional air defense systems, are increasingly used in conflicts from Ukraine to the Middle East, straining U.S. air defenses. Recent attacks, including Operation Epic Fury, targeted U.S. forces and allies in the Gulf, causing casualties and infrastructure damage despite the use of expensive interceptors like Patriot missiles. The high cost of these interceptors raises concerns about the sustainability of this defense strategy. Ukraine, a leader in drone warfare since the 2022 Russian invasion, has developed cheaper interceptor drones, costing as little as $1,400, with a high effectiveness rate against Shahed-type drones. The Pentagon and at least one Gulf government are reportedly interested in Ukraine's low-cost drone interceptor technology as a more affordable solution.

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.

Analysts warn that Iranian missile and drone strikes pose a significant threat to water supplies in Arab states along the Persian Gulf. These nations, including Kuwait, Oman, and Saudi Arabia, rely heavily on desalination plants for drinking water, with some countries sourcing up to 90% of their water this way. The plants, which remove salt from seawater, are vulnerable to attack, potentially leaving major cities unable to sustain their populations. While the focus has been on the impact of conflict on energy prices and oil exports, the vulnerability of desalination infrastructure presents an equally critical risk to the region's stability, highlighting the dependence of these "saltwater kingdoms" on this technology.

Iran has escalated attacks on energy infrastructure and transport in the Middle East, setting ablaze two tankers in Iraqi waters. This action is part of a broader campaign to disrupt energy markets, contributing to oil prices reaching $100 a barrel. Conflicting reports have emerged regarding Iran's stance on allowing India-flagged tankers to pass through the Strait of Hormuz, a critical route for global oil trade. While one Indian source indicated passage would be permitted, Reuters reported an Iranian source denying this. The attacks and uncertainty surrounding tanker passage are impacting global oil markets.

On March 9, 2026, global oil prices surged past $100 a barrel, exceeding a 20% increase, due to the ongoing war between the United States, Israel, and Iran. Brent crude reached over $114 a barrel before settling around $107.50. The conflict, which began with US and Israeli strikes on Iran on February 28, has disrupted global energy supplies, with Iran halting shipping in the Strait of Hormuz, a key oil transit route. In response, Iraq, the UAE, and Kuwait, major OPEC producers, have cut production. US President Trump dismissed concerns, predicting a rapid price drop after the conflict ends, while the Energy Secretary called any price increases temporary.

Global oil prices have surpassed $100 a barrel for the first time since 2022, reaching $108.10 for Brent crude and $108.72 for WTI crude as of Monday. The surge follows escalating military aggression in the Middle East, specifically the US-Israeli war on Iran, which has disrupted oil supplies and removed 20 million barrels per day from the market. Kuwait's national oil company has already announced precautionary cuts to its crude oil production. Experts attribute the price increase to the ongoing conflict and the US administration's stance, with concerns that continued disruption could lead to further price increases and production shutdowns across Gulf energy exporters. Oil prices have risen by two-thirds since the start of the year.

On March 5, 2026, Iran launched multiple missile and drone attacks across the Gulf region, targeting Kuwait, Bahrain, the UAE, and Qatar. These attacks are a response to ongoing military actions by the United States and Israel, which began on Saturday and have resulted in over 1,230 deaths according to Iranian state media. Iran initially targeted US military assets but expanded to civilian infrastructure after the US/Israeli attacks. The Iranian strikes have caused casualties, including US service members, Israelis, and UAE residents, and have disrupted oil tanker traffic near the Strait of Hormuz, leading to soaring oil and gas prices. Gulf countries are on high alert, with air defenses intercepting projectiles.

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.

Israeli Minister Amichai Chikli outlined a U.S.-Israeli mission in Iran with two main goals: removing existential threats and creating conditions for regime change. The immediate threat includes destroying Iranian ballistic missiles capable of reaching Israeli cities. While the IDF and U.S. Army won't replace the regime, the mission aims to empower the Iranian people to "regain their freedom." Former President Trump encouraged Iranians to take over their government after U.S. and Israeli military operations conclude. A U.S. official confirmed that Iran's Supreme Leader Ayatollah Ali Khamenei was killed in an Israeli strike in Tehran as part of "Operation Epic Fury." Chikli envisions an Iran aligned with the West, potentially becoming an ally to Israel, the U.S., and other nations in the region.

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.

Oil prices surged on Monday after the United States and Israel launched attacks on Iran, prompting retaliatory strikes against US and Israeli military installations in the Middle East. Brent crude rose by 9 percent to $79.41 a barrel, while West Texas Intermediate increased by 8.6 percent to $72.79 a barrel. The conflict has disrupted the global energy supply chain, particularly impacting traffic through the Strait of Hormuz, a critical waterway for oil tankers. Tankers are accumulating on either side of the strait due to concerns about attacks and insurance. Experts predict a significant price increase if the Strait of Hormuz remains effectively blocked, preventing 15 million barrels of crude oil from reaching markets daily.

Airspace closures across the Middle East, triggered by attacks between America/Israel and Iran, caused widespread flight disruptions, stranding or diverting hundreds of thousands of travelers. Several countries, including Israel, Qatar, Syria, Iran, Iraq, Kuwait, and Bahrain, closed their airspace, leading to the suspension of operations at key international airports in Dubai, Abu Dhabi, and Doha. Major airlines like Emirates, Qatar Airways, and Etihad cancelled thousands of flights, impacting an estimated 90,000 passengers daily passing through these hubs. Over 3,400 flights were cancelled across seven major Middle Eastern airports on Sunday. Some airports and landmarks in the region sustained damage, resulting in injuries and at least one reported death. The closure of Iranian airspace was extended until Tuesday morning.

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.