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.

A projectile struck a residential area in Al-Kharj, Saudi Arabia on Sunday, killing two foreign nationals (one Indian and one Bangladeshi) and injuring twelve others. Saudi authorities reported the incident, attributing it to an unspecified "military projectile," while Iran's IRGC claimed responsibility, stating they targeted radar systems in the Al-Kharj governorate, home to the Prince Sultan airbase. This attack is part of a series of Iranian counterattacks on Gulf nations hosting US military assets, following Israeli strikes on Iranian oil facilities. Other attacks on Sunday included intercepted drones in Riyadh, damage to fuel tanks at Kuwait's international airport, and damage to a water desalination plant in Bahrain. The escalating conflict raises concerns for the safety of the diverse international workforce across the Gulf.

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 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.

The US and Israel have launched a military campaign against Iran, initiating a new regional conflict. The offensive began Saturday with missile strikes and airstrikes, escalating on Sunday with renewed attacks across Iran. Targets included areas near Tehran's police headquarters, state television, and a defense ministry building. The US President stated the goal is regime change, following the death of Iran's Supreme Leader in an Israeli airstrike. Iran's UN ambassador reported civilian casualties and accused the US and Israel of deliberately targeting civilian areas. The conflict raises concerns about a wider war and regional instability.

On February 28, 2026, Qatar reported that eight people were injured by falling missile shrapnel after Iran fired 66 missiles at the country. Qatari authorities stated that their air defenses intercepted the missiles, but 114 reports of falling shrapnel were received nationwide. The Qatari Interior Ministry issued warnings urging residents to stay indoors and avoid military sites or unidentified debris. Qatar's Ministry of Foreign Affairs condemned the Iranian missile strikes as a violation of its sovereignty and a threat to regional stability, reserving the right to respond under international law.

The conflict between Iran, the US, and its partners is intensifying in the Middle East, marked by waves of Iranian drone attacks. Iran is using inexpensive Shahed-136 drones, costing approximately $20,000, to target US bases, oil infrastructure, and civilian buildings in response to US and Israeli airstrikes. While US-made Patriot missiles have proven effective in intercepting these drones, the cost disparity – $4 million per missile versus $20,000 per drone – is rapidly depleting resources. The conflict's outcome may hinge on which side can sustain its munitions supply longer, as both Iran and the US risk running low on weapons within weeks. This situation highlights the challenge of countering cheap drone technology with expensive defense systems, a problem previously seen in the Ukraine war.

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 the death of Supreme Leader Ayatollah Ali Khamenei in a US-Israeli attack on March 1, 2026, Iran has formed a three-member transitional council to govern the country. The council consists of Ayatollah Alireza Arafi, President Masoud Pezeshkian, and Chief Justice Gholam-Hossein Mohseni-Ejei. Arafi's appointment was confirmed by the Expediency Council. According to the Iranian Constitution, this council will oversee state duties until the Assembly of Experts, an 88-member panel, selects a new supreme leader. The Islamic Revolutionary Guard Corps (IRGC) and security chief Ali Larijani are also expected to play significant roles during the transition. The commander-in-chief of the IRGC was also killed in the same attack.

Following the death of Ayatollah Ali Khamenei, Iran faces a precarious situation with internal divisions and mounting external pressures. While some celebrated, hoping for an end to clerical rule, others mourned and demanded retribution. Despite maintaining military power, the regime faces a growing list of dead leaders, including high-ranking military officials, straining its leadership and resources. Simultaneously, Iran's regional relationships are deteriorating, with its Gulf partners criticizing its actions and accusing it of playing into the hands of the US. The Strategic Council on Foreign Relations pleaded with Gulf states to unite against the US, but the UAE countered that Iran's aggression is self-isolating. The article suggests that without a change in direction, the Iranian regime risks a breakdown in civil order.

Following the death of Iranian Supreme Leader Ayatollah Ali Khamenei in a US-Israeli air strike, China condemned the action amidst turmoil in Tehran and regional escalation. Despite the political uncertainty, analysts predict China's economic relationship with Iran, as its top oil buyer and trade partner, will remain strong. China is expected to maintain a pragmatic approach to Iran's new leadership, even if Tehran shifts towards the West, potentially impacting Chinese diplomatic and defense goals in the Middle East. A temporary leadership council consisting of Alireza Arafi, Masoud Pezeshkian, and Gholamhossein Mohseni Ejei will govern until the Assembly of Experts selects Khamenei's successor. The US President has called for regime change in Iran.

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 Israeli strikes targeting Iranian leadership infrastructure in Tehran, the fate of Iran's Supreme Leader Ayatollah Ali Khamenei is currently unknown. The strikes heavily damaged Khamenei's fortified compound, including his residence and the House of Leadership, with some areas reduced to rubble. While Israeli officials are assessing the results and haven't confirmed Khamenei's death, they haven't ruled it out. Iranian officials insist Khamenei and President Masoud Pezeshkian are safe, despite what they call an assassination attempt. Reports indicate a high-level meeting may have been underway at the time of the strike. Khamenei, who operates with tight security and a network of loyalists, has survived previous assassination attempts and unrest.

Following Israeli and US airstrikes on Iran, the Australian Department of Foreign Affairs (Dfat) has warned Australians of potential "reprisal attacks and further escalation" across the Middle East. Dfat updated its Smartraveller website, advising against travel to Iran and urging those in the country to leave if safe, citing the risk of military conflict and potential airspace closures impacting global flights. Australians remaining in Iran are advised to prepare to shelter in place with adequate supplies. The Australian embassy's operations in Iran are suspended. Prior to the attacks, Australia had already advised citizens in Israel and Lebanon to consider leaving and withdrew dependents of officials from Israel and Lebanon due to the deteriorating security situation.