*Ziad Daoud and Dina Esfandiary for Bloomberg News*
Iran’s retaliation against US and Israeli air strikes has stunned its Arab neighbors, whose worst nightmares are playing out. Iran has hit the United Arab Emirates, Saudi Arabia, Bahrain, Qatar and Kuwait hard. Even Oman, Tehran’s trusted backchannel and longtime mediator, has not been spared.
The Gulf states have intercepted most of the Iranian projectiles. But the strikes have still paralyzed airports, ports, and energy arteries. People died in the UAE and Saudi Arabia. The assault has rattled both citizens and the large foreign resident population.
The trauma will outlast the missiles, and how the Gulf recovers will matter to the world. This war has underscored two stubborn truths. First, the Middle East remains irreplaceable as an energy supplier — despite US shale and the renewables revolution. Second, the Gulf — which has built an image of a haven of stability and prosperity in a volatile region — isn’t immune to regional instability.
Let’s unpack the new reality; oil shipments to Asia, particularly China and India are perfectly safe. No one is targeting them. Most oil in Gulf….goes to Asia.
This is more a story of China’s inexorable rise, and America’s seemingly inexorable fall.
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*Ziad Daoud and Dina Esfandiary for Bloomberg News*
Iran’s retaliation against US and Israeli air strikes has stunned its Arab neighbors, whose worst nightmares are playing out. Iran has hit the United Arab Emirates, Saudi Arabia, Bahrain, Qatar and Kuwait hard. Even Oman, Tehran’s trusted backchannel and longtime mediator, has not been spared.
The Gulf states have intercepted most of the Iranian projectiles. But the strikes have still paralyzed airports, ports, and energy arteries. People died in the UAE and Saudi Arabia. The assault has rattled both citizens and the large foreign resident population.
The trauma will outlast the missiles, and how the Gulf recovers will matter to the world. This war has underscored two stubborn truths. First, the Middle East remains irreplaceable as an energy supplier — despite US shale and the renewables revolution. Second, the Gulf — which has built an image of a haven of stability and prosperity in a volatile region — isn’t immune to regional instability.
[Read the full essay here.](https://www.bloomberg.com/news/articles/2026-03-13/iran-war-trauma-of-middle-east-conflict-will-reshape-gulf-arab-states?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTc3MzQwNDE3MCwiZXhwIjoxNzc0MDA4OTcwLCJhcnRpY2xlSWQiOiJUQlRLSFFLSVAzSzIwMCIsImJjb25uZWN0SWQiOiJEMzU0MUJFQjhBQUY0QkUwQkFBOUQzNkI3QjlCRjI4OCJ9.Q2GzL-mMVM-Hgd0IvPY33HdgVt7tywpwOG-By2cwr0k)
Let’s unpack the new reality; oil shipments to Asia, particularly China and India are perfectly safe. No one is targeting them. Most oil in Gulf….goes to Asia.
This is more a story of China’s inexorable rise, and America’s seemingly inexorable fall.