Iran Attacks & Oil Shock: Gulf States on Alert | Israel-Iran Conflict Updates

A drone strike near Dubai International Airport on Monday rattled the United Arab Emirates, the latest in a series of attacks targeting Gulf states as the conflict between the United States, Israel, and Iran escalates. The incident, which triggered alarms across Dubai and prompted the deployment of air defense systems, came as Gulf nations grapple with their response to the ongoing war and increasingly face direct Iranian retaliation.

For twenty days, Gulf states have endured “a relentless barrage of thousands of Iranian drones and missiles” targeting critical infrastructure, including airports, hotels, ports, and financial districts, according to reports. While the UAE’s air defenses reportedly intercepted the latest projectiles, the frequency and scope of the attacks are raising concerns about the region’s stability and the potential for wider conflict.

The current situation represents a significant shift in the Gulf states’ approach to the US-Israel conflict with Iran. While previously cautioning the United States against military action, four senior officials from Gulf capitals have indicated that most are now urging Washington to continue striking Iranian targets. These officials, speaking anonymously, emphasized a desire to “ensure that Iran comes out of this war with its military power sufficiently degraded to cease posing a threat to them.”

This change in posture follows an initial period of opposition to the US and Israeli military operations, dubbed “Epic Fury” and “Roaring Lion” respectively. Gulf diplomats had expressed “serious doubt that [military strikes] would have the desired effect of ending Iran’s destabilizing activities in the region,” and favored a diplomatic resolution. However, the US and Israel proceeded with the strikes, citing concerns over Iran’s nuclear ambitions and ballistic missile capabilities.

Saudi Arabia, the United Arab Emirates, Bahrain, and Qatar are among the Gulf nations pushing for continued military pressure on Iran. The shift comes despite anticipating Iran’s retaliatory strikes, which have included targeting civilian sites. The Times of Israel reported that Gulf states largely foresaw the response, contributing to their initial reluctance towards military action.

The conflict has also exposed divisions within the region. While some Gulf states are advocating for a more aggressive stance, others remain wary of escalating tensions further. The Guardian reported that the attacks have prompted a reassessment of security strategies, with Gulf states weighing their options as the threat from Iran grows.

Israel’s government, meanwhile, has attempted to portray a sense of normalcy despite the ongoing conflict, reopening the economy despite school closures and continued bombardments. However, anxieties remain high, particularly in light of Hezbollah’s entry into the war, which has added a new and immediate threat to Israel’s northern border.

The ongoing conflict is also having significant economic repercussions. The Harvard Business Review notes the potential for an “oil shock,” and News24Energy reports that attacks on energy facilities have turned the war into a “worst-case scenario” for Gulf states. The Arab Center DC highlights the precarious position of Gulf states, “caught between powerful adversaries, exposed to escalating risks.”

As of March 23, 2026, no official statements have been released regarding further diplomatic efforts to de-escalate the conflict. The US and Israel have not publicly responded to the Gulf states’ calls for continued military action, and Iran has maintained its position of retaliation against perceived aggressors.