Iran Strikes Gulf Allies as Strait of Hormuz Tensions Escalate

Posted on March 17, 2026
by Yashmika Dukaran


Iran launched fresh attacks on the United Arab Emirates on Tuesday, striking US-aligned Gulf states in the third week of a US-Israeli military campaign against Tehran. President Donald Trump described the attacks as unexpected, although intelligence sources say he had been warned that such strikes were likely.

Six foreign diplomats in the Gulf and broader Middle East told Reuters that regional and Western governments anticipated Tehran would target Gulf Arab nations if the US or Israel launched operations against Iran.

The conflict has so far claimed at least 2,000 lives and shows no sign of abating. The Strait of Hormuz Beirut. Israeli media reported that Iran’s security chief Ali Larijani was targeted, though it remains unclear whether he was injured or killed.

Iraqi security sources reported rockets and at least five drones struck the US embassy in Baghdad early Tuesday, marking the most intense assault since the war began. No casualties were reported.

In the UAE, Iranian attacks forced temporary airspace closures, and a drone strike hit an oil facility in Fujairah for a second day. Debris from an intercepted missile fell in Abu Dhabi’s Bani Yas area, killing one Pakistani national, while a fire caused by a drone strike was reported at the Shah gas field.

Despite Trump describing the attacks as a surprise, US officials confirmed that he had been briefed prior to the war that Tehran could target neighboring Gulf allies and attempt to close the Strait of Hormuz. Trump has also voiced frustration that several US partners, including Germany, Spain, Italy, Japan, and Australia, have declined to provide naval escorts to reopen the strait.

German Chancellor Friedrich Merz said Berlin had not been consulted before the US-Israel campaign and that any naval intervention would not guarantee safe passage for ships. Trump suggested that China, a major Iranian crude importer, could assist, and indicated he might delay a planned trip to Beijing if support was not forthcoming.

Despite heavy US and Israeli strikes, Iran continues to deploy drones across the region. Parliament Speaker Mohammad Baqer Qalibaf insisted that Iran’s offensive capabilities remain strong, emphasizing improved accuracy and experience.

The disruptions have sent oil prices up more than 5% and are contributing to concerns about stagflation, as rising energy costs threaten to fuel inflation while constraining global growth. The Reserve Bank of Australia responded by raising its cash rate for a second consecutive month to help contain rising prices.