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100 days of Iran war: Gulf states grapple with security and economic consequences

DW English · Jun 4, 2026, 10:00 AM

Key takeaways

  • The US-Israel war with Iran has forced the Gulf states to reassess long-held assumptions about security, alliances and stability in their region.
  • Since February 28, when the US and Israel launched joint strikes on Iran, and despite a nominal ceasefire, the GCC countries, have been performing a difficult balancing act.
  • In recent years, the Gulf states, and particularly Saudi Arabia, have implemented ambitious economic reforms aimed at diversifying their economies and reducing dependence on oil revenues.

Why this matters: an international story with cross-border implications worth tracking.

The US-Israel war with Iran has forced the Gulf states to reassess long-held assumptions about security, alliances and stability in their region. What does this mean for the future?

https://p.dw.com/p/5Eje GThe Iran war has shifted the Gulf states' sense of security, analysts say Image: Stringer/REUTERSAdvertisement For the regional Gulf Cooperation Council (GCC) states — Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE) — the consequences of the US-Israeli conflict with Iran extend far beyond immediate military threat.

Since February 28, when the US and Israel launched joint strikes on Iran, and despite a nominal ceasefire, the GCC countries, have been performing a difficult balancing act. Key infrastructure in the region is being targeted by thousands of ballistic missiles and drones while the blockade of the Strait of Hormuz by — imposed by both Iran and the US — has had a major impact on trade and economic stability. At the same time, Gulf governments have been trying to avoid being drawn deeper into the conflict.

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