Iran Attacks: Dubai Airport, Oil Terminals & $11.3bn War Cost

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Iran Escalates Attacks, Targeting Dubai Airport and Gulf Shipping Amidst Ongoing Conflict

Iran has intensified its attacks, targeting commercial ships and Dubai International Airport, escalating a campaign aimed at disrupting the oil-rich Persian Gulf and pressuring the United States and Israel to de-escalate the ongoing conflict. These actions come as the United Nations Security Council demands a halt to Iran’s strikes on its Gulf neighbors, citing threats to global oil supplies.

Recent Attacks and Damage

On Wednesday, Iranian attacks resulted in at least four people being wounded after two drones struck near Dubai International Airport in the United Arab Emirates. Despite the strikes, flight operations continued.1 A fire broke out at a luxury apartment tower in Dubai Creek Harbor early Thursday, attributed to an Iranian drone strike, and was subsequently extinguished by firefighters.1

Further attacks targeted Bahrain and Iraq. A major fire erupted on Muharraq Island in Bahrain, home to the island kingdom’s international airport, prompting authorities to urge residents to stay indoors and close windows due to smoke. The airport area includes jet fuel tanks and facilities serving Bahrain’s oil industry.2 In Iraq, an attack on the Basra port resulted in at least one fatality and a temporary halt to operations at all of the country’s oil terminals.2

Economic Impact and International Response

The first week of conflict with Iran has reportedly cost the United States $11.3 billion, according to a Pentagon briefing to Congress.2 Both sides appear to be attempting to outlast the other, disrupting trade routes, constricting the flow of fuel and fertilizer from the Gulf, and threatening air traffic in a heavily traveled region.

Iran has targeted oil fields and refineries in Gulf Arab nations and has significantly impeded cargo traffic through the Strait of Hormuz, a critical waterway for global oil transport, through which approximately one-fifth of all traded oil passes.1

In response to the escalating situation, the International Energy Agency (IEA) has agreed to release 400 million barrels of oil, the largest volume of emergency oil reserves in its history, to mitigate the war’s impact on energy markets.1 The United States plans to release 172 million barrels of oil from its Strategic Petroleum Reserve next week to combat rising prices.

Previous Disruptions at Dubai Airport

Prior to the recent attacks, Dubai International Airport experienced disruptions on Saturday, March 7, 2026, following a drone strike that briefly suspended flight operations.3 Visuals circulating on social media showed a drone impacting the airport and causing a significant smoke plume. Emirates temporarily suspended all flights to and from Dubai before resuming operations.3

The United Nations Security Council has voted 13-0 to demand a halt to Iran’s attacks on its Gulf neighbors.2

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