Has US war on Iran killed the 'Gulf moment'? Submitted by Christian Henderson on Thu, 04/02/2026 - 20:06 The strategic integration of GCC states within the global economy is facing its most severe test yet Smoke rises from a ship after an attack near the Strait of Hormuz, amid the US-Israeli conflict with Iran, on 11 March 2026 (Royal Thai Navy/AFP) On In 2018, Emirati academic Abdulkhaleq Abdulla published a book titled The Gulf Moment, arguing that states such as the UAE, Qatar and Saudi Arabia had eclipsed countries such as Egypt and Iraq - the historical core of the region - and were now projecting political, economic and cultural power on the world stage.  Central to this transformation, he argued, was the deep integration of Gulf states within the global economy.  “The Gulf’s moment is unprecedented in Arab history,” he wrote, noting that it “coincided with the coming of a new defining moment in world history, namely globalisation”. Abdulla correctly pointed out that the integration of Gulf states within the global economy has been central to their success, as their development is deeply tied to international flows of energy, commodities, capital and labour.  But as a result of this reliance on global commerce, the US-Israeli war on Iran that started in February has been a major shock to Gulf economies. In retaliation against the brutal air offensive by Israel and the US, Iran has pursued a strategy of attacks on energy infrastructure and logistical facilities in Gulf Cooperation Council (GCC) countries. By attacking Gulf countries, Iran is attempting to raise the costs of this war for the global economy. The globalisation that created the power and wealth behind the “Gulf moment” has swiftly become a vulnerability. Iran’s most powerful weapon has been its partial closure of the Strait of Hormuz. This is the Gulf’s main sea artery, through which 20 percent of the world’s oil is transported to market.  Resilience and adaptation Anot