Gulf Countries

Iran struck two tankers in the Strait of Hormuz, testing a ceasefire that has reduced oil prices. Gulf countries, including Saudi Arabia, have increased oil shipments, but experts doubt the strait's oil flow will fully recover. China's demand and green energy transition are critical factors affecting future crude prices.

EAM Jaishankar met with Qatar's PM to review bilateral cooperation and regional developments. He will also meet counterparts and top leaders of four Gulf countries to enhance bilateral relations and discuss mutual interests.

Gulf countries were attacked following a second round of US military strikes on Iran. The attacks occurred after the US launched additional strikes against Iran, escalating regional tensions.

US Secretary of State Marco Rubio rejected a proposal to charge ships for using the Strait of Hormuz, stating the US would oppose such fees on an international waterway. Iran had suggested the idea of charging for safe passage through the strategic strait, which handles about 20% of global oil and gas supplies.

Saudi Arabia is expected to host talks aimed at repairing relations between Iran and Gulf countries following the Middle East war. A regional summit is being planned in Riyadh, possibly including other neighboring countries, though no date has been set. The meetings are separate from ongoing Iran-US negotiations.

Honduras will purchase Ukrainian drones to combat drug trafficking, following a meeting between the two nations' presidents. Ukraine has emerged as a leader in military drone technology since 2022, with licensing agreements in Canada and Gulf countries, and a German manufacturer planning to build Ukrainian-designed cruise missiles.

The IMF warns that instability in the Middle East, caused by the US-Israeli war on Iran, could have lasting economic impacts on Africa, particularly affecting food security and agricultural costs. IMF's new Africa director, Zeine Zeidane, stated that disruptions in fertilizer exports may take six to seven months to resolve.

Qatar's LNG exports show tentative recovery as a tanker transited the Strait of Hormuz, a key route affected by the Iran war. QatarEnergy aims to restore 50% of output capacity within a month of the strait reopening fully, with full production hindered by Iran's earlier attacks on two LNG plants, requiring up to $26 billion and five years for repairs. The IMF projects an 8.6% GDP contraction for Qatar this year, the worst in the Gulf.

US investment firm KKR anticipates increased Gulf investments in alternative supply routes due to the Iran war and Strait of Hormuz closures. The firm highlights a global trend toward securing critical resources like energy, minerals, and food, with oil price forecasts suggesting underestimation by up to $10 per barrel over the next 12-18 months.

Joe Kent, a former Trump administration official, suggested the US could strengthen a ceasefire agreement with Iran by reducing military and intelligence support for Israel and withdrawing troops from Gulf bases within range of Iranian missiles. He argued that Israeli leaders have historically opposed diplomatic settlements and that removing these factors would lower the risk of renewed conflict.

Joe Kent, an ex-Trump administration official, suggested cutting U.S. military and intelligence support to Israel and reducing the U.S. military presence in Gulf bases to strengthen the U.S.-Iran ceasefire agreement and reduce conflict risks.

Pakistan's diplomatic success in brokering negotiations between the USA, Iran, and Gulf countries has elevated its global standing. The country aims to leverage this recognition to boost its higher education sector, which faces rising demand from a large youth population and growing transnational education partnerships, including with UK institutions.

The US and Iran exchanged strikes, with Iran retaliating against US attacks in Gulf countries. The US president warned Iran would 'pay the price' for stalled negotiations, escalating tensions.

The US is considering redirecting Iranian assets to Gulf countries to aid reconstruction after attacks on Kuwait and Bahrain. This move, part of the Trump administration's plan, involves $24 billion in frozen Iranian assets central to peace talks, with concerns it may hinder negotiations but could gain support from affected Gulf allies.

Pakistan's Naqvi visited Iran with a 'special letter' for the supreme leader as part of diplomatic efforts to end the US-Iran war. Gulf countries have warned of potential escalation in the conflict.

Iran targeted US bases in Gulf countries, including Bahrain and Kuwait, after the US shot down drones and struck Iranian radar sites. Bahrain and Kuwait reported intercepting ballistic missiles and drones launched by Iran, following an exchange of fire between the US and Iran that threatens a fragile ceasefire.

Oman is investing $4.2 billion in an agriculture development project in the Batinah region to enhance food security and reduce reliance on imports, aiming to produce 80% of its food by 2040. The government has established cloud seeding stations and allocated over 800 million rials to expand arable land and improve rainfall by 14%.

President Trump's proposal for Gulf and Arab countries to normalize ties with Israel as part of Iran peace talks has faced resistance. Pakistan rejected the idea of joining the Abraham Accords, while other countries have not committed.

An Iran war beginning February 28, 2026 has disrupted the Strait of Hormuz and created significant economic shocks for China, the world's second-largest economy. Major impacts include reduced demand for Chinese exports as global economies contract, energy supply disruptions (one-third of China's crude oil transits the strait), supply chain challenges, and threats to Chinese investments in the Middle East region.

Ukraine is showcasing its advanced drone interception capabilities in the Gulf region through defense deals, highlighting its emergence as a significant defense-industry power.