The war on Iran is already upending the Middle East. Look to the Gulf states to see how | Nesrine Malik
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The Bottom Line
U.S. and Israeli airstrikes on Iran, and Iranian retaliations, are impacting the Middle East.
How This Affects You
Escalation of conflict involving major oil producers could lead to increased global oil prices, potentially raising your gas and energy costs.
AI Summary
US and Israeli airstrikes on Iran, followed by Iranian retaliations, are significantly impacting the Middle East, particularly the Gulf states. Countries like Saudi Arabia, Qatar, and the UAE are experiencing challenges to their perceived stability due to the escalating conflict. The ongoing hostilities highlight the region's role in global energy supply and its broader geopolitical vulnerabilities. This situation suggests profound consequences for the entire Middle East beyond the immediate parties involved. The conflict's ramifications are expected to reshape regional dynamics and international relations.
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<p>More than 43,000 American citizens have safely returned to the U.S. from the Middle East since the U.S. <a href="https://www.axios.com/2026/03/11/trump-iran-war-end-withdrawal" target="_blank">struck Iran</a> 11 days ago, the State Department said Wednesday. </p><p><strong>Why it matters: </strong>Despite <a href="https://www.axios.com/2026/03/03/state-department-iran-trump-flights-middle-east-americans" target="_blank">widespread panic</a> among Americans abroad last week after the State Department encouraged citizens to immediately evacuate various countries, the agency now says its scaling back assistance due to declining demand. </p><hr><p><strong>What they're saying: </strong>State Department Assistant Secretary Dylan Johnson said in a <a href="https://www.state.gov/releases/office-of-the-spokesperson/2026/03/statement-from-assistant-secretary-dylan-johnson-on-successful-operations-to-assist-american-citizens-in-the-middle-east-4/" target="_blank">statement</a> Wednesday tha...
GlobalUS ignites Iran war, but Gulf Arab states pay the price, Gulf sources say - Reuters
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Several major international businesses closed or evacuated offices in Gulf countries after Iran threatened US- and Israel-linked economic targets and centres in the Middle East. US finance group Citi and British consultancy Deloitte evacuated offices in Dubai's financial centre, while PwC, another British consultancy, closed offices in Saudi Arabia, Qatar, the UAE and Kuwait. HSBC has closed all branches in Qatar until further notice.
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More than a week of the U.S. and Israel's war against Iran has dragged in global powers, upended the world's energy and transport sectors, and brought chaos to usually peaceful areas of the region.
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Iran has accused the United States of bombing a desalination plant on Qeshm Island. The country was already facing a severe water shortage.
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The Iran war's targets widened dangerously into civilian infrastructure Sunday as Bahrain accused Iran of striking one of the desalination plants that are crucial for Gulf nations' drinking water.

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