Iran War: Gulf States Targeted as Oil Prices Surge
DUBAI, United Arab Emirates — Iran launched new attacks on Gulf Arab countries on Tuesday, escalating pressure in the Middle East as the conflict continues to disrupt global markets and raise fears of a wider regional war. The attacks come as oil prices have surged, impacting economies worldwide.
Recent Attacks and Regional Impact
Incoming missile sirens sounded early Tuesday in Dubai, United Arab Emirates, and in Bahrain. Saudi Arabia reported intercepting and destroying two drones over its oil-rich eastern region, while Kuwait’s National Guard stated it had shot down six drones. These attacks follow previous incidents targeting energy infrastructure and shipping lanes, significantly impacting global oil supplies.
Oil Prices and Economic Consequences
The conflict has disrupted major oil and gas supplies, leading to rising fuel prices across the United States and globally. Brent crude, the international standard, spiked to nearly $120 per barrel on Monday before falling back, but remained around $90 a barrel on Tuesday – nearly 24% higher than before the war began on February 28th. CNBC reports that G7 finance ministers are considering a joint release of emergency oil reserves to address supply concerns.
Political Responses and Statements
U.S. President Donald Trump sought to downplay fears of a prolonged regional conflict, stating it would be a “short-term excursion.” However, Iranian officials have signaled a willingness to engage in a long-term war. Ali Mohammad Naini, a spokesperson for the paramilitary Revolutionary Guard, asserted that “Iran will determine when the war ends.” Kamal Kharazi, foreign policy adviser to the office of the supreme leader, stated there is no “room for diplomacy anymore” unless economic pressure prompts intervention to stop what he called the “aggression of Americans and Israelis against Iran.” Al Jazeera
Humanitarian Concerns and Displacement
The fighting has prompted widespread displacement, with millions seeking shelter as bombs hit military bases, government buildings, oil and water installations, hotels, and at least one school. Five members of the Iranian women’s soccer team, who were in Australia for a tournament when the war began, have been granted asylum. CNBC
Strait of Hormuz and Maritime Security
Iran has effectively halted tanker traffic through the Strait of Hormuz, a critical shipping lane through which 20% of the world’s oil is transported. Attacks on merchant ships near the strait have resulted in at least seven sailor deaths, according to the International Maritime Organization. Trump warned that any disruption to oil flow through the strait would be met with a forceful response from the United States. Financial Express
Ongoing Military Operations
Israel has launched multiple attacks on Hezbollah in Lebanon, with the Iranian-backed group responding with missile fire into Israel. Pro-Iran militias in Iraq have also targeted U.S. Bases in the country. An airstrike on a pro-Iran militia in Iraq on Tuesday killed at least five militiamen and wounded four others. Israel has completed strikes targeting Hezbollah’s financial arm, al-Qard Al-Hasan, and reiterated a call for residents of southern Lebanon to evacuate.
Casualty Figures
As of Tuesday, at least 1,230 people have been killed in Iran, at least 397 in Lebanon, and 11 in Israel, according to officials. Seven U.S. Service members have also been killed.
Financial Markets and Aramco Profits
Financial markets experienced volatility but opened with gains in Asia on Tuesday. Saudi Aramco, the oil giant, reported 2025 profits of $104 billion, down from $110 billion in 2024, with revenues at $445 billion, down from $480 billion in 2024. CNBC