{"id":3258,"date":"2026-09-01T09:07:56","date_gmt":"2026-09-01T09:07:56","guid":{"rendered":"https:\/\/modernhomejournals.com\/?p=3258"},"modified":"2026-09-01T09:07:56","modified_gmt":"2026-09-01T09:07:56","slug":"iran-war-threatens-the-economies-of-trumps-gulf-allies","status":"publish","type":"post","link":"https:\/\/modernhomejournals.com\/?p=3258","title":{"rendered":"Iran War Threatens the Economies of Trump&#8217;s Gulf Allies"},"content":{"rendered":"<div>\n<div>\n<\/div>\n<div>\n<p>The U.S. and Iran have resumed military strikes \u2014 trapping America\u2019s partners in the Middle East in volatility that could hurt their economies for years to come.<\/p><p>Read more <a href=\"https:\/\/modernhomejournals.com\/?p=3252\">Democrats Cry Foul at Texas County\u2019s Plan to Slash Polling Sites<\/a><\/p><p>U.S. Central Command on Sunday launched the first American strikes on Iranian forces in more than a month, <span><u>saying<\/u><\/span> the targets posed \u201can imminent threat\u201d to civilian shipping through the Strait of Hormuz. Tehran <span><u>launched<\/u><\/span> retaliatory missiles at American forces in Jordan hours later. The renewed violence came after the Trump administration had argued it was weakening Iran\u2019s grip on the strait and bolstering energy shipments through the crucial waterway by deploying U.S. naval forces. The administration has also applied unprecedented <span><u>sanction<\/u><\/span> pressure on the country, which led analysts to predict Iran would retaliate. Now, experts <span><u>believe<\/u><\/span> that the potential for tit-for-tat strikes will continue even if all-out conflict is avoided.<\/p>\n<p>\u201cBoth sides are now settling in for a long U.S.-Iran war,\u201d Richard Fontaine of the Center for a New American Security think tank <span><u>wrote on X<\/u><\/span>. \u201cThe best bet now is on a protracted economic contest, enforced largely but not exclusively through military means.\u201d<\/p><p>American allies in the region have sold themselves in recent years as reliable, safe and business-minded nations. But the U.S.-Iran war has challenged that narrative as those same allies have faced Iranian attacks on U.S. bases they host, arrangements once seen as a measure of security against such attacks, as well as their own infrastructure.<\/p>\n<section>\n<div>\n<h2>\n<span>Trending<\/span>\n<\/h2>\n<\/div>\n<div>\n<div>\n<ul>\n<li>\n<div>\n<div>\n<div>\n<div>\n\n<figure class=\"wp-block-image size-large\">\n<figure class=\"wp-block-image size-medium_large\"><img loading=\"lazy\" decoding=\"async\" alt=\"Burgum\" class=\"wp-image-3118\" height=\"506\" src=\"https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/08\/d7b533497f5a2b88073ac38e5e25d585-768x506.jpg\" width=\"768\" srcset=\"https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/08\/d7b533497f5a2b88073ac38e5e25d585-768x506.jpg 768w, https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/08\/d7b533497f5a2b88073ac38e5e25d585-300x198.jpg 300w, https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/08\/d7b533497f5a2b88073ac38e5e25d585.jpg 1024w\" sizes=\"auto, (max-width: 768px) 100vw, 768px\" \/><\/figure>\n<\/figure>\n\n<\/div>\n<\/div>\n<\/div>\n<div><h3>\n<span>\n                      Trump Is Quietly Working to Give Part of Yosemite to a Private Developer\n                    <\/span>\n<\/h3><\/div>\n<\/div>\n<\/li>\n<li>\n<div>\n<div>\n<div>\n<div>\n\n<figure class=\"wp-block-image size-medium_large\">\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" alt=\"Election 2026 Polling Closures\" class=\"wp-image-3256\" height=\"512\" src=\"https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/09\/471b5ec2bffcd3debd63c42f62b0aacf.jpg\" width=\"768\" srcset=\"https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/09\/471b5ec2bffcd3debd63c42f62b0aacf.jpg 768w, https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/09\/471b5ec2bffcd3debd63c42f62b0aacf-300x200.jpg 300w\" sizes=\"auto, (max-width: 768px) 100vw, 768px\" \/><\/figure>\n<\/figure>\n\n<\/div>\n<\/div>\n<\/div>\n<div><h3>\n<span>\n                      Democrats Cry Foul at Texas County\u2019s Plan to Slash Polling Sites\n                    <\/span>\n<\/h3><\/div>\n<\/div>\n<\/li>\n<li>\n<div>\n<div>\n<div>\n<div>\n\n<figure class=\"wp-block-image size-large\">\n<figure class=\"wp-block-image size-medium_large\"><img loading=\"lazy\" decoding=\"async\" alt=\"Defense Secretary Pete Hegseth speaks to members of the media.\" class=\"wp-image-3257\" height=\"512\" src=\"https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/09\/503843ee4d79f3c1ea9dcc996dcc05ff-768x512.jpg\" width=\"768\" srcset=\"https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/09\/503843ee4d79f3c1ea9dcc996dcc05ff-768x512.jpg 768w, https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/09\/503843ee4d79f3c1ea9dcc996dcc05ff-300x200.jpg 300w, https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/09\/503843ee4d79f3c1ea9dcc996dcc05ff.jpg 1024w\" sizes=\"auto, (max-width: 768px) 100vw, 768px\" \/><\/figure>\n<\/figure>\n\n<\/div>\n<\/div>\n<\/div>\n<div><h3>\n<span>\n                      Pentagon Broadens AI Tools to Include ChatGPT and Grok\n                    <\/span>\n<\/h3><\/div>\n<\/div>\n<\/li>\n<li>\n<div>\n<div>\n<div>\n<div>\n\n<figure class=\"wp-block-image size-large\">\n<figure class=\"wp-block-image size-medium_large\"><img loading=\"lazy\" decoding=\"async\" alt=\"Gas Prices\" class=\"wp-image-3114\" height=\"512\" src=\"https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/08\/525abf077785b55b90df0d9d6fbbf7ae-768x512.jpg\" width=\"768\" srcset=\"https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/08\/525abf077785b55b90df0d9d6fbbf7ae-768x512.jpg 768w, https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/08\/525abf077785b55b90df0d9d6fbbf7ae-300x200.jpg 300w, https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/08\/525abf077785b55b90df0d9d6fbbf7ae.jpg 1024w\" sizes=\"auto, (max-width: 768px) 100vw, 768px\" \/><\/figure>\n<\/figure>\n\n<\/div>\n<\/div>\n<\/div>\n<div><h3>\n<span>\n                      Gas Prices Are High. Trump\u2019s Supporters Are Feeling The Most Pain.\n                    <\/span>\n<\/h3><\/div>\n<\/div>\n<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/section>\n<p>The new strikes are, for countries like Saudi Arabia, Qatar and the United Arab Emirates, \u201ca continuation of a risky stalemate,\u201d Anna Jacobs Khalaf, a fellow at the Arab Gulf States Institute think tank, told NOTUS. \u201cGulf states are under no illusions anymore about their influence with Trump. They will always try and lobby for de-escalation \u2026 [but the] bottom line is that there is very little trust left in this U.S. administration.\u201d<\/p><p>That stalemate threatens those countries\u2019 efforts to attract outside investment and to develop significant revenue streams beyond exporting fossil fuels. Semafor <span><u>reported<\/u><\/span> Sunday that plans for three Saudi companies to raise money through initial public offerings have been shelved, signaling shrinking expectations of attracting foreign money. The opening of a multibillion-dollar branch of the Wynn Resorts empire in the U.A.E. has been <span><u>postponed<\/u><\/span>, and hiring there has seen its sharpest <span><u>drop<\/u><\/span> since the early months of the pandemic. And Qatar has <span><u>cut<\/u><\/span> funding for government departments and aid.<\/p><p>Several major events in the Gulf countries, including multiple F1 races and conferences, were postponed in the early weeks of the war. While other high-profile gatherings that are expected to draw thousands of attendees, like Qatar\u2019s Doha Forum and a crypto conference in Dubai, remain on the calendar, those planning to attend the events said they regularly discuss possible delays or disruptions.<\/p><p>Middle Eastern policymakers, particularly those from nations with deep pockets, had expected geopolitical matters like long-standing, unresolved U.S.-Iran animosity would be secondary to economics for Trump.<\/p>\n<p>\u201cThe big failed bet from all these Gulf states was they bet the Trump administration cared more about making money \u2026 Ultimately, Trump reached a place where he cares more about not conceding a loss to Iran than he cares about the entire economy of the region going down the tube,\u201d said Andrew Leber, a professor at Tulane University.<\/p><p>A White House official said in an email that Trump has \u201cextraordinary relationships with all of our Gulf partners.\u201d<\/p><p>\u201cPresident Trump has always been clear that his preference is diplomacy. Unfortunately, Iran chose the path of violence by killing American troops, committing international acts of terrorism, and lashing out at its neighbors in the region \u2014 and the Commander-in-Chief ensures that they reap the consequences,\u201d the official continued.<\/p><p>Regional governments and royal families are simultaneously entangled in Trump\u2019s personal financial interests and his promises of delivering prosperity for Americans. Saudi Arabia\u2019s Public Investment Fund <span><u>put<\/u><\/span> $2 billion into a private-equity fund run by Trump\u2019s son-in-law and adviser Jared Kushner, a firm in which Qatar and the U.A.E. have also <span><u>invested<\/u><\/span> hundreds of millions of dollars. World Liberty Financial, the cryptocurrency business driven by the families of Trump and his adviser Steve Witkoff, is preparing to <span><u>launch<\/u><\/span> a bank whose largest stake belongs to Emirati royal Sheikh Tahnoon bin Zayed al Nahyan. Meanwhile, Trump has <span><u>claimed<\/u><\/span> he has secured over $2 trillion in Gulf investments for America.<\/p><p>\u201cThe thing about investing this money is: You can give the money and hope \u2026 but you have to be willing to cut off the money or otherwise impose costs if they don\u2019t do what you want,\u201d Leber said, noting no Arab state has threatened Trump with withdrawing any of those investments.<\/p><p>Read more <a href=\"https:\/\/modernhomejournals.com\/?p=3248\">JD Vance Calls Abdul El-Sayed \u2018Very, Very Evil\u2019 in Rally for Mike Rogers<\/a><\/p><p>Though already wealthy, those countries want to ensure they remain so, by preserving the social contracts that allow autocratic families to rule and avoiding instability.<\/p>\n<p>\u201cGulf leaders expected those enormous commitments to deliver security, access and strategic predictability,\u201d Abdullah Baabood, a scholar of international relations at Waseda University in Japan, told NOTUS. But instead, the war is \u201cdamaging precisely the sectors their diversification strategies depend on: tourism, aviation, logistics, investment and non-oil industries,\u201d he wrote in a text message.<\/p><p>Leber noted that big investments by international companies in sectors the Gulf states focused on, such as data centers, have not been announced this year, in contrast to 2025.<\/p><p>\u201cI don\u2019t think people who have invested time and money in these countries are going to bolt. It\u2019s just harder to attract the next generation of firms and investments to the region,\u201d Leber said.<\/p><p>The entertainment and tourism sectors are among those most directly stymied by the ongoing conflict, he noted. Though their direct contributions to national economies are smaller than those of other sectors, countries like Saudi Arabia had hoped growth in those areas would soften their global reputation and counter long-standing perceptions that they are too conservative for foreigners\u2019 comfort.<\/p><p>\u201cThere\u2019s a strong effort to try to go against the image that we cannot host any events,\u201d said Aziz Alghashian, a fellow at the Gulf International Forum. \u201cThe Saudis and others, they\u2019re far more wary of image and perception than before \u2026 they will have to work a lot harder in showing there is more investment and there\u2019s room for investment.\u201d<\/p><p>Baabood argued that \u201cgovernments can continue building hotels, resorts and venues, but they cannot easily compensate for weaker international demand.\u201d<\/p>\n<p>Riyadh previously addressed unexpected regional flare-ups like the war in Gaza from 2023 onward by emphasizing its agility and ability to quickly shift its plans, Alghashian said. And Leber noted Gulf governments generally have preserved enough reserves of capital to sustain them through \u201ca year or two of turbulent times.\u201d<\/p><p>Still, both analysts highlighted long-term concerns. The Iran war has sapped decision-makers\u2019 time and energy and interrupted their planning, Alghashian said \u2014 and driven a rethink that could leave the U.S. less influential in the region.<\/p><p>Even as the Trump administration argues it\u2019s isolating Tehran economically, Gulf states may soon base their planning more on fellow countries in the region \u2014 including Iran \u2014 than the U.S.<\/p><p>\u201cAccommodation with Iran is increasingly not just a foreign-policy preference,\u201d Baabood said. \u201cIt\u2019s an economic-security necessity.\u201d<\/p><p>Read more <a href=\"https:\/\/modernhomejournals.com\/?p=3240\">Supreme Court Allows Construction on Trump\u2019s Ballroom to Continue<\/a><\/p>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>The freshly renewed conflict continues to stymie efforts by Saudi Arabia, Qatar and the U.A.E. to expand their non-oil revenue and global reach.<\/p>\n","protected":false},"author":1,"featured_media":3253,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[],"class_list":["post-3258","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-foreign-policy"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - 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