Energy

The US-Israeli war on Iran is hitting Gulf Arab nations hard – but with a wider impact in today’s interlinked world.

As well as global oil and gas supplies, Gulf states play a critical role in many economies.

So how are they connected – and what could be at risk?

Presenter: James Bays

Guests:

Nikolay Kozjharnov – Research associate professor in energy security at the Gulf Studies Center at Qatar University

Cornelia Meyer – Macroeconomist and oil and gas specialist

Torbjorn Soltvedt – Associate director at global risk intelligence company Verisk Maplecroft

It diversified energy supplies, built LNG terminals and reduced its dependence on Russia.

Europe thought it had learned its lesson after the war in Ukraine.
But today it’s facing another energy shock.

And this time it may be even worse, as the war in Iran disrupts supply through the Strait of Hormuz.

It’s happening when EU gas reserves are unusually low.

That means Europe will be competing with Asia to fill its storage tanks, which might force the price of LNG even higher.

Electricity bills are climbing.

Industry is under pressure.

Governments are stepping in to cushion the blow.

As the United States-Israeli war on Iran enters its fourth week this weekend, pressure on oil and gas markets continues to mount due to severe disruption to shipping traffic through the Strait of Hormuz as well as attacks on and around key energy facilities in the Gulf.

In peacetime, 20 percent of the world’s oil and gas is shipped from producers in the Gulf through the Strait of Hormuz – the only route to the open ocean – including 20 million barrels of oil per day.

To bridge the shortage its closure has caused, countries in the Middle East are exploring alternative routes to get energy exports out.

In this explainer, we look at three major pipelines in the Middle East that producers may be pinning their hopes on, and whether they can fill the gap.

What has happened in the Strait of Hormuz?

On March 2 – two days after the US and Israel began strikes on Iran – Ebrahim Jabari, a senior adviser to the commander-in-chief of Iran’s Islamic Revolutionary Guard Corps (IRGC), announced that the strait was “closed”. If any vessels tried to pass through, he said, the IRGC and the navy would “set those ships ablaze”. Since then, traffic through the strait has plunged by more than 95 percent.

Iranian officials have most recently stated that the strait is not completely closed – except to ships belonging to the US, Israel and those who collaborate with them – but have also laid down new ground rules. Any vessel must secure Tehran’s approval to transit through the narrow waterway.

As a result, over the past fortnight, countries have been scrambling to do deals with Iran to secure safe passage and a few, mostly Indian, Pakistani and Chinese-flagged tankers have been allowed to pass.

On Thursday, Malaysian Prime Minister Anwar Ibrahim thanked Tehran for granting Malaysian vessels “early clearance” through the strait.

Meanwhile, about 2,000 ships flying the flags of other nations are stuck on either side of the strait.

Which oil pipelines could serve as alternate routes?

The only alternative to shipping oil is piping it across land or under the sea. Three oil pipelines could work as ways around the Strait of Hormuz, including:

Saudi Arabia’s East-West Pipeline

The East-West pipeline is also known as the Petroline and is operated by Saudi oil giant Aramco. Aramco is one of the world’s largest companies, with a market capitalisation exceeding $1.7 trillion and annual revenues of $480bn. The oil giant controls 12 percent of global oil production, with a capacity of more than 12 million bpd.

It is a 1,200km (745-mile) pipeline which runs from the Abqaiq oil processing centre close to the Gulf in Saudi Arabia to the Yanbu port on the Red Sea, on the other side of the country.

However, the pipeline does not have the capacity to fully make up for the Hormuz closure.

In 2024, about 20 million barrels per day (bpd) passed through the Strait of Hormuz, according to data from the United Nations. Crude oil and condensate made up 14 million bpd of this, while petroleum was the remaining 6 million bpd.

The East-West pipeline has the capacity of transporting up to 7 million bpd. On March 10, Aramco said about 5 million bpd could be made available for exports, while the rest could supply local refineries.

Since the US-Israeli war on Iran began at the end of February, Saudi Arabia has ramped up its oil flow through this pipeline. In January and February, an average of 770,000 bpd flowed through the pipeline, according to data from Kpler, a data and analytics company. By Tuesday this week, this had increased to an average of 2.9 million bpd.

However, using the Saudi pipeline still carries a risk.

The Houthis, an Iran-backed Yemeni armed group whose attacks on ships in the Red Sea caused global shipping chaos during Israel’s genocidal war in Gaza from 2023 to 2025, could target the Bab al-Mandeb Strait, which connects the Red Sea to the Gulf of Aden, and the Indian Ocean beyond.

An unnamed Houthi leader told the Reuters news agency that the Houthis remain ready to attack the Red Sea again in solidarity with Tehran, the agency reported on Thursday.

“We stand fully militarily ready with all options. As for other details having to do with determining zero hour they are left to leadership and we are monitoring and following up with the developments and will know when is the suitable time to move,” the Houthi leader said.

The Bab al-Mandeb is the southern outlet of the Red Sea, situated between Yemen on the Arabian Peninsula and Djibouti and Eritrea on the African coast.

It is one of the world’s most important routes for global seaborne commodity shipments, particularly crude oil and fuel from the Gulf bound for the Mediterranean via the Suez Canal or the SUMED pipeline on Egypt’s Red Sea coast, as well as commodities bound for Asia, including Russian oil.

The Bab al-Mandeb is 29km (18 miles) wide at its narrowest point, limiting traffic to two channels for inbound and outbound shipments.

Iran could open a new front in the Bab al-Mandeb Strait if attacks are carried out on Iranian territory or its islands, Iran’s semiofficial Tasnim cited an unnamed Iranian military source as saying on Wednesday.

UAE’s Abu Dhabi Crude Oil Pipeline

The Abu Dhabi Crude Oil Pipeline is also called the ADCOP or the Habshan-Fujairah pipeline.

The 380km pipeline runs from Habshan, an oil and gasfield in the southwestern area of Abu Dhabi, United Arab Emirates, to the port of Fujairah on the Gulf of Oman.

The pipeline, which became operational in 2012, has a capacity of about 1.5 million barrels per day (bpd). It is unclear how much is now being transported through the pipeline.

However, oil exports from Fujairah do appear to have risen in the past month despite the closure of the strait, averaging 1.62 million bpd in March compared with 1.17 million bpd in February, according to Kpler analyst Johannes Rauball, who spoke to Reuters.

Iraq-Turkiye Crude Oil Pipeline

The Iraq-Turkiye Crude Oil Pipeline, also called the Kirkuk-Ceyhan Pipeline, links Iraq to the Mediterranean coast of Turkiye.

The pipeline, which has the capacity of 1.6 million bpd, currently carries about 200,000bpd.

Iraq is among the top five global producers of oil and is the second largest within the Organization of the Petroleum Exporting Countries (OPEC), exceeding 4 million bpd.

Can these pipelines replace the Strait of Hormuz?

No. While these pipelines can take on some of the capacity of Hormuz, their combined capacity is only about 9 million bpd, compared with about 20 million bpd for the strait.

Additionally, these pipelines are land-based and within the range of Iranian missiles and drones, which makes them just as vulnerable to attacks and damage in the ongoing conflict as ships travelling through the strait. Throughout the war, energy infrastructure all over the Gulf has suffered strikes.

Are there other options?

Theoretically, oil can be transported on trucks, but this is costly, slow and inefficient.

A standard truck can carry anywhere between 100 to 700 barrels per day, depending on the number of trips. Hundreds of thousands of barrels would be needed to meet needs, requiring thousands of trucks, which could also be targeted in strikes.

Malaysian leader says oil tankers granted clearance by Iran as government introduces measures to conserve fuel.

Iran has allowed Malaysian ships to pass through the Strait of Hormuz, Malaysia’s leader said, amid the global energy crunch driven by the United States and Israel’s war with Tehran.

In a televised address on Thursday, Malaysian Prime Minister Anwar Ibrahim expressed thanks to Iran’s President Masoud Pezeshkian for granting Malaysian vessels “early clearance” through the waterway, which has been effectively closed by Tehran.

“We are in the process of securing the release of the Malaysian oil tankers and the workers involved so they can continue their journey home,” Anwar said.

Anwar did not elaborate on how many vessels had cleared the strait, which normally facilitates the transport of about one-fifth of global oil and liquefied natural gas (LNG) supplies, or under what conditions the vessels were cleared for safe passage.

The Malaysian government, which has traditionally pursued a policy of non-alignment in international affairs, did not immediately respond to requests for comment.

Anwar said that while Malaysia had been affected by the disruption to energy supplies, the Southeast Asian country was in a “much better position” than other nations due to the capacity of the state-run oil and gas company Petronas.

As one of the world’s top suppliers of LNG, Malaysia is a net energy exporter, but the country imports nearly 70 percent of its crude oil from the Gulf region.

Anwar said his government would take a series of measures to conserve fuel, including reducing the individual monthly quota for subsidised petrol and “gradually and selectively” moving civil servants onto work-from-home arrangements.

“Food supplies are affected; prices will certainly rise. Fertiliser as well, and of course, oil and gas,” Anwar said.

“So there are steps we need to take. There are countries whose impacts are far worse than ours, but that does not mean we are spared entirely,” he said.

While Iran has stated that the strait is open to ships that are not aligned with the US or Israel, Tehran has claimed the right to exercise control over the waterway and admitted responsibility for at least two of 20 documented attacks on commercial vessels in the region.

Iran’s parliament is also pushing legislation that would establish a toll system in the strait amid reports that Iranian authorities have been demanding vessels fork over as much as $2m to guarantee their safe passage.

Five ships were tracked transiting the strait via their automatic identification systems on Wednesday, up from four the previous day, according to maritime intelligence company Windward.

Before the war, an average of 120 vessels transited the waterway each day, according to Windward.

EXPLAINER

The US and Israel’s war on Iran is intensifying, as Trump again claims Iranian leaders want to ‘make a deal’.

The United States and Israel’s war on Iran continues, with an Al Jazeera correspondent in Tehran reporting strikes are “increasing in number and in intensity” amid conflicting claims about whether negotiations are taking place.

US President Donald Trump says talks are happening, but Iran rejects the talks, saying it will continue to “resist” US aggression.

On Thursday, Iran carried out retaliatory strikes against Israel and several Gulf countries, as the Middle East conflict sees no signs of ending, and global energy and food prices continue to rise.

In Iran

• Intensifying attacks: US-Israeli attacks on Iran are “increasing in number and in intensity”, according to Al Jazeera correspondent, with Israel announcing extensive strikes on central Isfahan. Alongside US forces, Israel has launched a “wave of extensive strikes” across Iran.
• Civilian casualties reported: Iranian media reported that two teenage boys were killed in a recent US-Israeli strike on a residential area in a village in the county of Shiraz.
• Iran talks: US President Donald Trump insisted that Iran was taking part in peace talks.
• Iran chooses ‘resistance’: Foreign Minister Abbas Araghchi said Tehran will continue its “resistance” and does not intend to negotiate.
• US targets missile capacities: The US has hit two-thirds of Iran’s production facilities for missiles and drones, a top officer said.
• Threat to Iranian island: Tehran warned enemies may try to occupy one of its islands with support from an unnamed regional country.
• Iran’s leverage: Jane Foley, an analyst from Rabobank, noted that Tehran’s position on negotiations leaves the ball firmly in their court. Because the critical Strait of Hormuz remains effectively closed, she suggests Iran could have the power to dictate the terms of any resolution.
• New toll legislation: The Iranian parliament is preparing a draft law that would mandate the collection of tolls and duties from ships and tankers transiting the Strait of Hormuz, treating the waterway like a standard transit corridor.

In the Gulf

• Hezbollah plot uncovered in Kuwait: Authorities arrested six people allegedly linked to Hezbollah, accused of planning assassinations in the Gulf state, the Interior Ministry said.
• Saudi Arabia: Saudi Arabia’s Defence Ministry on Thursday morning announced the interception and destruction of a drone in the Eastern Province. Its air defence systems intercepted and destroyed at least two dozen drones targeting the Eastern Province, home to the majority of the kingdom’s oil facilities, on Wednesday.
• Bahrain: A fire broke out at a facility in the Muharraq Governorate due to what the Interior Ministry described as “Iranian aggression”.
• United Arab Emirates: The UAE’s Defence Ministry said on Thursday that its air defence systems have been actively responding to and intercepting incoming missiles and drones from Iran.

In the US

• Trump says Iran wants a deal: Trump again claims Iranian leaders want to “make a deal so badly” but are afraid to say so “because they figure they’ll be killed by their own people”.
• Trump threatens ‘hell’ if no deal: Trump is ready to “unleash hell” on Iran if Tehran does not accept a deal to end the war, the White House warned on Wednesday.
• Strategic posturing: Jason Campbell, a former Pentagon official, said US threats to “hit Iran harder” are more about signalling than intensifying attacks.
• Intentional vagueness: Campbell told Al Jazeera that Trump is deliberately omitting specific details because he wants the Iranian regime to believe the US is fully capable and willing to execute these harsher attacks.

In Israel

• Missile salvoes: Israel’s army on Thursday morning said it had detected a wave of missiles from Iran heading towards the country, the second salvo in less than 30 minutes.
• Rockets and missiles targeting Israel: Iranian missiles continue to target central and northern Israel. Additionally, Hezbollah has fired volleys of rockets into the Western Galilee region.

In Iraq, Lebanon

• Gulf issues Iraq demand: Gulf states and Jordan have urged Iraq to stop attacks by pro-Iran armed groups from its territory.
• Ground clashes with Hezbollah: Israeli troops have crossed the border into Lebanese territory and are actively engaging in ground combat. Hezbollah says its fighters are continuing to clash with invading Israeli troops in south Lebanon.
• Defending Lebanese soil: Hezbollah’s Secretary-General Naim Qassem stated that the group is now in a war against both the US and Israel and will do everything it can to defend Lebanese territory.

Oil markets and food

• Oil prices climb: Oil prices have climbed higher amid fading hopes of de-escalation in the Iran war following Tehran’s rejection that talks with the US are under way.
• Food supply shocks: Antony Currie, a columnist for Breakingviews, warned that the Iran war will likely have a more severe impact on global food security than Russia’s 2022 invasion of Ukraine.

March 26 (UPI) — Britain’s armed forces and law enforcement have been authorized to board sanctioned vessels of Russia’s so-called shadow fleet, Prime Minister Keir Starmer announced Wednesday, as London targets a key revenue source funding the Kremlin’s war against Ukraine.

In an effort to hinder Russian President Vladimir Putin’s ability to wage war, Britain, along with other European nations, has focused on his fleet of semi-clandestine tankers used to evade sanctions to ship and sell oil.

London has sanctioned at least 544 of these ships and the EU has blacklisted nearly 600.

Russia’s shadow fleet is estimated to consist of anywhere from several hundred to more than 1,000 vessels, according to the Center for Strategic and International Studies. In September, this fleet transported a seasonal high of 3.7 million barrels of oil a day, real-time intelligence, analytics and data-tracking firm Kpler said.

Britain’s armed forces will be able to interdict vessels London has sanctioned and found transiting its waters, Starmer said a day before he is to arrive at the Joint Expeditionary Force Summit in Helsinki, Finland, where leaders will discuss regional security amid the U.S.-Israel war with Iran and how they can combat Russia’s escalating aggression.

“Putin is rubbing his hands at the war in the Middle East because he thinks higher oil prices will let him line his pockets,” Starmer said in a statement.

“That’s why we’re going after his shadow fleet even harder, not just keeping Britain safe but starving Putin’s war machine of the dirty profits that fund his barbaric campaign in Ukraine.”

According to 10 Downing Street, a suspect vessel will first be reviewed by law enforcement, military and energy specialists, who will then make a recommendation to ministers before an operation is carried out.

After the ship is detained, criminal proceedings may be brought against the vessel’s owners, operators and crew on allegations of breaching British sanctions, it said.

Starmer said that Putin and those in his inner circle “should be in no doubt: We will always defend our sovereignty and stand with Ukraine for as long as it takes.”

The announcement comes months after Britain aided the United States in seizing Bella 1 on Jan. 7. Following the operation, British ministers ordered the development of plans for London to carry out future, similar operations targeting Russia’s shadow fleet, resulting in Wednesday’s announcement, according to 10 Downing Street.

Brent crude tops $104 a barrel as hopes fade for deescalation in US-Israel war on Iran.

Oil prices have climbed higher amid fading hopes of deescalation in the Iran war following Tehran’s denial that talks with the United States are under way.

Futures for Brent crude, the international benchmark, rose nearly 2 percent on Thursday to top $104 per barrel after Tehran dismissed reports of direct negotiations with US President Donald Trump’s administration.

The rise comes after oil prices eased on Wednesday following reports that Trump had shared a 15-point plan for ending the war with Iran.

Asian stock markets opened lower on Thursday, with Japan’s Nikkei 225, South Korea’s KOSPI and Hong Kong’s Hang Seng Index all seeing losses.

Iranian Foreign Minister Abbas Araghchi said in an interview with state media aired on Wednesday that Tehran was not engaged in direct talks with Washington and has “no intention of negotiating for now”.

White House Press Secretary Karoline Leavitt warned on Wednesday that Iran would be “hit harder” than ever before if Tehran did not accept military defeat.

Iran’s effective closure of the Strait of Hormuz, a conduit for one-fifth of global oil supplies, and its attacks on energy facilities across the Middle East have prompted a surge in energy prices worldwide.

Oil prices are up more than 40 percent compared with before the US and Israel launched strikes on Iran on February 28, prompting numerous countries to implement fuel rationing and other energy conservation measures.

Market-watchers say prices are likely to rise further until shipping is free to traverse the strait, despite efforts by countries to bolster supply by tapping emergency stockpiles in coordination with the International Energy Agency.

While Tehran has repeatedly claimed that the strait is open to ships that are not aligned with its enemies, daily transits have all but collapsed since the start of the conflict.

Four vessels were tracked transiting the waterway via their automatic identification systems on Tuesday, down from an average of 120 daily transits before the conflict, according to maritime intelligence firm Windward.

March 25 (UPI) — Environmental organization Oceana has accused the Mexican government of maintaining an opaque response to an oil spill that has affected at least 390 miles of coastline in the Gulf of Mexico.

The oil has largely impacted the southern part of Veracruz state and the northern part of Tabasco state since early March, with dozens of contaminated sites still not receiving attention.

The spill has lasted nearly three weeks without an identified cause or confirmed responsible parties, affects the southwestern Gulf of Mexico reef corridor, a key ecological area that stretches along the coast between both states.

President Claudia Sheinbaum said the Office of the Attorney General is investigating, with support from environmental and energy agencies, while an interdisciplinary team analyzes the causel.

Sheinbaum stated that the spill originated from a private vessel, not state-owned oil company Pemex.

Veracruz Gov. Rocío Nahle said she will meet with officials from Petroleos Mexicanos to evaluate the installation of containment barriers in coastal areas following requests from fishermen.

Nahle said cleanup efforts are intensifying and that specialized mesh barriers are being installed at strategic points along the coastline to contain residues, with plans to expand the work depending on marine current movements.

Oceana warned that the situation constitutes a “crisis of transparency and accountability,” noting that official information has been insufficient and contradictory compared to the scale of damage reported by coastal communities.

Greenpeace Mexico released an interactive map with real-time reports on the expansion of the spill, including citizen records of thick residues and their impact on wildlife and coastal ecosystems.

However, Veracruz governor downplayed the impact, saying in interviews that it involves “traces” or small “drops” of oil on beaches and asserting that reports of dead wildlife were false — an assessment that contrasts with reports from communities and environmental organizations.

Oceana called on the government to establish “transparent, agile and binding” interagency coordination mechanisms and to adopt structural measures to prevent the Gulf from facing another environmental crisis without responsible parties or clear information.

“The Gulf of Mexico and its communities cannot continue to be treated as an environmental sacrifice zone,” Terrazas said.

In a sharp escalation in the Middle East conflict, energy production itself is now in the firing line.

Iran targeted facilities across the Gulf – including the world’s largest liquefied natural gas hub in Qatar.

It was retaliation for an Israeli strike on an Iranian gasfield hours earlier.

Energy prices are soaring, and countries from Asia to Europe are scrambling for alternative supplies.

But, for Asia – the world’s largest LNG buyer – this is a severe energy shock.

The region depends on Gulf supplies to keep its lights on, its factories running, and its people fed.

As the United States-Israeli war with Iran sends tremors through the global economy, the poorest members of the Global South are the most exposed to the fallout.

In Asia, Africa and the Middle East, developing economies are bearing the brunt of surging energy costs prompted by the closure of the Strait of Hormuz and attacks on oil and gas facilities across the Gulf.

From Pakistan to Bangladesh and Sri Lanka, through to Jordan, Egypt and Ethiopia, policymakers are facing the double whammy of being both heavily dependent on imported energy and having limited financial firepower to absorb the shock of spiking prices.

In Pakistan, which imports about 80 percent of its energy from the Gulf and has lurched between economic crises for years, authorities have scrambled to roll out measures to conserve fuel.

Facing the depletion of the country’s petrol and diesel reserves within weeks, officials have closed schools, introduced a four-day working week for government offices, ordered half of the country’s public sector employees to work from home, and slashed fuel allowances for official business.

Pakistani Prime Minister Shehbaz Sharif said last week that he had decided against a proposed hike in petrol and diesel prices before the Eid Al-Fitr celebration, saying the government would “bear the burden” of rising costs.

Sharif’s announcement came after the government had earlier this month approved a 55 rupee ($0.20) rise in the price of a litre (0.26 gallons) of petrol or diesel.

While government subsidies have helped cushion the blow for the public, there are fears that petroleum prices will surge and bring economic activity to a halt if the war drags on, said S Akbar Zaidi, the executive director of the Institute of Business Administration in Karachi.

“The overall shock is quite severe, although it has not been fully passed on to consumers and to industry,” Zaidi said.

“I expect the next few weeks to make things far worse once the disruption and price factors pass through.”

In Bangladesh, which imports about 95 percent of its oil and is expected to run through its fuel reserves within days, petrol pumps in some districts have run dry despite the introduction of fuel rationing.

Sri Lanka, which imports about 60 percent of its energy needs and is still reeling from an economic meltdown that began in 2019, has declared every Wednesday a public holiday and introduced a mandatory fuel pass for vehicle owners to conserve petrol and diesel, stockpiles of which are projected to run dry within weeks.

In Egypt, one of the biggest energy importers and among the most indebted economies in the Middle East, the government has ordered malls, shops and cafes to close by 9pm on weekdays and 10pm during weekends, and cut back on public lighting.

Facing growing pressure on public finances due to the government’s heavy subsidisation of fuel prices, Egyptian officials on March 10 announced price hikes of between 15 and 22 percent for petrol, diesel and cooking gas.

While acknowledging the burden on the public, Egyptian President Abdel Fattah el-Sisi said the move was necessary to avoid “harsher and more dangerous outcomes”.

“For a majority of developing economies, especially those already grappling with debt and high import dependence, they are facing a potent mix of inflation, currency pressures and fiscal strains,” said Yeah Kim Leng, a professor of economics at the Jeffrey Cheah Institute on Southeast Asia at Sunway University in Kuala Lumpur, Malaysia.

“The hardest hit are net energy and food importers, especially those with fragile macroeconomic foundations and pre-existing vulnerabilities that typified countries with low per capita income and high poverty rates,” Yeah added.

Pakistan, Bangladesh, Sri Lanka, Jordan, Senegal, Egypt, Angola, Ethiopia and Zambia are among the most at risk, according to a recent analysis by the Washington-based Centre for Global Development, which looked at factors including dependence on fuel imports, public debt levels and foreign exchange reserve/import ratios.

Currency depreciation

The weakening of many developing countries’ currencies against the US dollar – the result of investors buying the greenback amid heightened geopolitical uncertainty – has compounded the situation by further driving up costs.

“Countries such as Indonesia and the Philippines have already seen their currencies at near record lows even before the start of the conflict, making imports, including oil, much more expensive,” said Azizul Amiludin, a non-resident senior fellow at the Malaysia Institute of Economic Research in Kuala Lumpur.

Much as the fallout of the war poses particular challenges for governments in developing countries, the effect on citizens is disproportionate, too.

In less advanced economies, citizens spend much more of their pay cheques on fuel and food, leaving them more exposed to rising living costs.

At the same time, governments in developing countries have less capacity to provide a safety net for those at risk of falling through the cracks.

“In vulnerable economies, governments often attempt to shield their populations from price hikes by subsidising fuel and food,” said Yeah, the Jeffrey Cheah Institute professor.

“However, with depleted fiscal buffers and shrinking revenues, this becomes unsustainable. The ensuing austerity, combined with hyperinflation, can trigger widespread social unrest and a full-blown fiscal crisis.”

With the US and Israel barely a month into their war and no clear timetable for its end in sight, many analysts expect things to get worse before they get better.

Khalid Waleed, a research fellow at the Sustainable Development Policy Institute in Islamabad, said rising transport costs would soon be felt at supermarket checkouts.

“Diesel is the backbone of Pakistan’s freight and agricultural economy,” Waleed said.

“Trucking costs have started climbing, and that will feed into everything from flour to fertiliser in the weeks ahead.”

Once Pakistan’s wheat harvest gets under way in April, food prices could spike well beyond their current levels, Waleed said.

“Combine harvesters, threshers, tractors for haulage from field to market, and the trucks that move grain from fields to flour mills and storage facilities all run on high-speed diesel,” he said.

“For a country where wheat flour is the single largest item in the food basket of the bottom two income quintiles, this is not a marginal concern,” Waleed added.

“If diesel prices stay elevated through April and May, Pakistan will harvest its wheat at the most expensive input cost in years, and that cost will transmit directly into food inflation at a time when households have almost no capacity left to absorb further price shocks.”

March 24 (UPI) — An unidentified projectile struck the grounds of Iran’s Bushehr nuclear power plant on Tuesday night, according to Iran’s Atomic Energy Organization, the second time in a little more than two weeks that the facility has been threatened by the ongoing war.

The projectile struck at 9:08 p.m. local time, resulting in no casualties or damage, it said in a statement.

“Attacking peaceful nuclear facilities is not only a violation of international regulations and rights, but also seriously endangers #regional security,” Iran’s AEO said in a post tagging the United Nations nuclear watchdog, the International Atomic Energy Agency.

“It is expected that international institutions will adopt a responsible and transparent stance in response to such actions.”

The IAEA said it was informed of the incident by Iran, adding that the plant was operating normally.

The agency’s director-general, Rafael Grossi, reiterated his call “for maximum restraint to avoid nuclear safety risks during conflict,” the IAEA said in a statement.

The incident comes eight days after an unidentified projectile struck near the plant on March 17, the first reported strike near Bushehr since the war between Iran and the United States and Israel began late last month.

Located near Bushehr city on Iran’s southwest Persian Gulf coast, the Bushehr plant began construction in 1975, but its original German contractor abandoned the project following the Islamic Revolution four years later. In the mid-1990s, Russia agreed to complete Bushehr Unit 1, Iran’s first reactor, which began operating in 2011, according to the U.S. Congressional Research Service.

Iran’s paralysis of the Strait of Hormuz has led to major disruption in global oil and gas supply and many countries have begun tapping into their strategic oil reserves to evade an economic crisis.

Since the US-Israeli war on Iran began on February 28, Tehran, whose territorial waters extend into the Strait, has blocked the passage of vessels carrying 20 percent of the world’s oil and liquified natural gas (LNG) from the Gulf to the rest of the world. The strait is the only waterway to open ocean available for Gulf oil and gas producers.

Last week, the price of Brent crude topped $100 a barrel compared to the pre-war price of around $65.

The United States Trump administration has tried and failed to re-open the strait. First, it called on Western nations to send warships to help escort shipping through the strait – an option all have declined or failed to respond to. Then, on Sunday, Trump gave Iran 48 hours to reopen the strait or face US attacks on its power plants.

However, on Sunday, Iran said it would hit back at power plants in Israel and those in the region supplying electricity to US military assets. And, on Monday, Iran said it would completely shut the Strait of Hormuz if US attacks on its energy infrastructure continue.

Following Iranian attacks on energy infrastructure across the Gulf over the past three weeks, countries including Saudi Arabia, UAE, Iraq and Kuwait have also cut their oil output, raising further concerns about global oil and gas supply.

On Monday, Trump appeared to backtrack on his Hormuz ultimatum when he ordered all US strikes on power plants in Iran to be paused for five days and claimed the US was holding talks with Iran. Iran has denied this.

In the face of chaos, on March 11, the 32 member countries of the International Energy Agency (IEA) agreed to release 400 million barrels of oil from their strategic emergency reserves – the largest stock draw in the agency’s history. It is far higher than the 2022 release of 182 million barrels of oil by the group’s members after Russia invaded Ukraine.

What are strategic oil reserves and which countries hold them?

What is a strategic oil reserve?

A strategic oil reserve or strategic petroleum reserve (SPR) is an emergency stockpile of crude oil which is held by the government of a country in government facilities.

This oil reserve can be drawn on in cases of emergencies like wars and economic crises. Governments generally buy the oil through agreements with private companies in order to keep their reserves filled.

According to the IEA, its members currently hold more than 1.2 billion barrels of these public emergency oil stocks with a further 600 million barrels of industry stocks held by private organisations but under government mandate to be available to supplement public needs.

Other reserves are also held by non IEA members like China.

Which countries have strategic oil reserves? Can they withstand the war in Iran?

China

Beijing is not an IEA member, but holds the world’s largest strategic oil reserve.

According to China’s Ministry of Ecology and Environment, Beijing “started a state strategic oil reserve base programme in 2004 as a way to offset oil supply risks and reduce the impact of fluctuating energy prices worldwide on China’s domestic market for refined oil”.

“The bases are designed to maintain strategic oil reserves of an equivalent to 30 days of imports, or about 10 million tonnes,” according to a 2007 report from Chinese state news agency Xinhua.

These strategic oil reserves are primarily located along China’s eastern and southern coastal regions such as Shandong, Zhejiang and Hainan.

China does not officially publish information about its crude inventories so it is not clear how much oil the country has in reserve. However, according to energy analytics firm Vortexa, in 2025, “China’s onshore crude inventories (excluding underground storage) continued to rise… reaching a record 1.13 billion barrels by year-end”.

According to data from Kpler, China bought more than 80 percent of Iran’s shipped oil in 2025. As the war in Iran escalates, therefore, Chinese companies such as refiner Sinopec have begun pushing for permission to use oil from the country’s reserves according to a Reuters report on Monday.

“We basically won’t buy Iranian oil, this is pretty clear,” Sinopec President Zhao Dong told a company results briefing in March, according to Reuters.

“We believe the government is closely monitoring crude oil and refined fuel inventories and market situations, and will advance policies at the appropriate ⁠time to support refinery productions,” he added.

US

Of the IEA members, the US holds one of the largest strategic oil reserves with 415 million barrels of oil. The stores are maintained by the US Department of Energy. It has confirmed that it will release 172 million barrels of oil from its SPR over this year as its contribution to coordinated efforts with the IEA.

On Friday, the Trump’s administration announced that it has already lent 45.2 million barrels of crude from the SPR to oil companies.

The US created its SPR in 1975 after an Arab oil embargo triggered a spike in gasoline prices which badly affected the US economy.

The reserves are located near big US refining or petrochemical centres, and as much as 4.4 million barrels of oil can be shipped globally per day.

The SPR currently covers roughly 200 days of net crude imports, according to a Reuters news agency calculation.

US presidents have tapped into the stockpile to calm oil markets during war or when hurricanes have hit oil infrastructure along the US Gulf of Mexico.

In March 2024, US President Joe Biden announced oil would be released from the reserve to ease pressure from oil price spikes following Russia’s invasion of Ukraine in February 2022 and amid subsequent sanctions imposed on Russian oil by the US and its allies.

Japan

An IEA member, Japan also has one of the world’s largest strategic oil reserves.

According to Japanese media Nikkei Asia, at the end of 2025, the country held about 470 million barrels of in emergency reserves which is enough to meet 254 days of domestic consumption. Out of this amount, 146 days worth of oil are government-owned, 101 days are owned by the private sector, and the remainder is jointly stored by oil-producing countries.

Japan set up its national oil reserve system in 1978 to prevent future economic disruptions following the global oil crisis in 1973. That oil crisis heightened Japan’s vulnerability and dependence on oil from abroad. The country remains one of the world’s largest oil importers, relying on fossil fuels from overseas for about 80 percent of its energy needs.

Japan’s reserves are primarily located in 10 coastal national stockholding bases with major storage sites in the Shibushi base in Kagoshima in southern Japan.

On March 16, Japan announced that it had begun releasing oil from its emergency reserves amid the global energy crisis sparked by the effective closure of the Strait of Hormuz.

Japanese Prime Minister Sanae Takaichi told journalists the country would unilaterally release 80 million barrels of oil from stockpiles amid supply concerns.

UK

As of February 26, according to the UK Department of Energy Security and Net Zero, the UK holds about 38 million ⁠barrels of crude oil and 30 million barrels of refined products, as strategic reserves. The reserves are thought to be able to last around 90 days.

The country established its reserves in 1974 following the oil crisis of the 1970s and also to meet its IEA obligations. Members of the organisation are required to maintain at least 90 days of net imports in reserve.

The UK’s strategic reserves are largely held by private oil companies, but are regulated by the government. Milford Haven in South Wales and Humber in northeast England are key locations of reserves.

The country is among the 32 IEA nations releasing oil from its reserve to address the oil crisis amid the war in Iran. The UK government will be contributing 13.5 million barrels as a part of the release.

EU

EU member nations including Germany, France, Spain and Italy, all IEA members, also hold strategic oil reserves.

Germany has 110 million barrels of crude oil and 67 million barrels of finished petroleum products which are held by the government and can be released in a matter of days, according to Germany’s economy ministry.

France reported about 120 million barrels’ worth of crude and finished products in reserve at the end of 2024, the most recent data publicly available. About 97 million barrels of that is held by SAGESS, a government-mandated entity, with ‌a breakdown ⁠of about 30 percent crude oil, 50 percent gasoil, 9 percent gasoline, 7.8 percent jet fuel and some heating oil. Another 39 million barrels are held by the country’s oil operators.

On March 16, Spain approved the release of around 11.5 million barrels of oil reserves over 90 days to counter ⁠supply shortages caused by the effective closure of the Strait of Hormuz, Energy Minister Sara Aagesen told reporters. This is the country’s contribution to the IEA release. The country has around 150 million barrels of crude oil reserves in total.

Italy, by law, was holding about 76 million barrels of reserves, representing 90 days of Italy’s average net oil imports, in 2024.

Locals in northern India have a growing concern over essential resources like water, fuel and food, that have become costly due to the US-Israeli war on Iran. The conflict has brought implications on oil and gas prices, which has also affected bottled water and food costs.

IMPERIAL — Whenever the weather changes suddenly, or the skyline becomes shrouded in a windy haze, Fernanda Camarillo braces herself for an asthma attack.

Her condition has become more manageable, but the 27-year-old said it’s still scary when her chest tightens and she starts to wheeze. It was one of her first thoughts when she heard about plans to develop a massive data center next to her home in Imperial County, a farming community near the border of Mexico that struggles with poor air quality.

“A lot of people in the county are asthmatic,” she said, explaining that she worries the new center would add more pollution. “I’ve been anxious — so many of us are voicing our concerns.”

Data centers have existed for decades but are rapidly changing and expanding due to the worldwide boom in artificial intelligence, or AI as it’s known. States and communities nationwide have started pushing back, citing concerns that the projects could strain power grids, increase utility bills and have negative health and environmental impacts.

In California, state legislators are debating how to protect residents and natural resources without creating so much red tape that developers go elsewhere, taking their jobs and taxable earnings with them.

No Data Center signs are posted in the front yard of a home that is right behind the proposed site.

“We can be supportive of innovation and a technology that is needed but also protect our communities and our health and our environment,” said state Sen. Steve Padilla (D-San Diego). “We can do both at the same time.”

The California Legislature is considering bills to prohibit the projects from being exempted from the state’s stringent environmental law and to impose new tariffs on new major energy users that strain power supplies. Lawmakers also have proposed restrictions on new data centers, requiring companies to provide verifiable estimates on expected water and energy usage before they can be granted a business permit.

Imperial resident Fernanda Camarillo, who is an asthmatic, holds some of her medications.

Members of Congress also expressed concerns. Rep. Ro Khanna, speaking at a town hall about AI last month at Stanford University, said legislators must ensure data centers serve the communities that power them.

“We live in a new gilded age,” said Khanna (D-Fremont). “What kind of future are we going to build?”

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Eric Masanet, a professor at UC Santa Barbara specializing in sustainability science for emerging technologies, described the facilities as the “brains” of the internet. The sprawling centers are filled with banks of specialized computers that process online shopping orders, stream movies, host websites, encode Zoom and other videoconferencing apps, store data and serve as switching stations for the digital world that’s now woven into daily life.

Data centers, particularly those that power AI, use significant amounts of water and energy. The facilities accounted for about 4.4% of the nation’s total electricity consumption in 2023, up from 1.9% in 2018, according to a report provided to Congress from the Lawrence Berkeley National Laboratory. The researchers projected that figure will reach 6.7% to 12% by 2028.

Many companies, including big tech giants like Meta, Google and Amazon, are making major investments in AI.

“We are building a lot more data centers faster than we ever did — and a new AI data center is 10 to 20, maybe 30 times, the size of the largest data centers we had before,” Masanet said.

The proposed site of the 950,00-square-foot data center is on a dusty parcel that is next to the Victoria Ranch housing community and adjacent to farmland in Imperial, Calif.

It’s unclear how many data centers are in the state. A California Energy Commission spokesperson told the Los Angeles Times it does not track this information. Data Center Map, a nongovernmental website that tracks data centers across the world, lists 289 facilities in California, with more than 4,000 nationwide.

The federal government has, so far, largely left it to states or localities to regulate data centers.

The facilities can generate significant revenue for local governments due to sales and property taxes.

But some new proposals are sparking a backlash. More than 200 community and environmental organizations, including a dozen from California, sent an open letter to Congress in December calling for a national moratorium on new data centers.

Robert Gould, a pathologist with San Francisco Bay Physicians for Social Responsibility, one of the organizations that signed the letter, explained data centers are causing a shift away from renewable energy and back toward fossil fuels because the facilities need a reliable and constant stream of power.

Cornell University researchers last year estimated that AI growth could add 24 to 44 million metric tons of carbon dioxide to the atmosphere annually by 2030, unless steps are taken to change course.

Gould said fossil fuel emissions are associated with various cancers, an increase in hospitalizations for older adults due to respiratory conditions, and asthma attacks or stunted lung growth in children. Particulate matter from fossil fuel emissions is also linked to cardiovascular events and negative effects on maternal fetal health.

Gould’s organization has noticed an alarming trend.

“These are generally placed in communities that are the least able to defend themselves,” he said.

Farmworkers toil in the noon heat to pick vegetables in Imperial. Agriculture is an important part of the Imperial Valley economy.

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The debate over data centers is heating up in the Imperial Valley, a rural desert region in southeastern California where a proposed center faces fierce opposition from residents.

The county in 2025 granted the project an exemption for the California Environmental Quality Act, known as CEQA. The landmark 56-year-old state law has been credited with helping to preserve California’s natural beauty and protecting communities from hazardous impacts of construction projects — but also blamed for stymieing construction.

Imperial Valley Computer Manufacturing, a California-based limited liability company that started two years ago, plans to develop a 950,000-square-foot facility in the county that’s designed for advanced artificial intelligence and machine learning operations. The company says it will use reclaimed wastewater and EPA-certified natural gas generators, and create 2,500 to 3,500 construction jobs and 100 to 200 permanent positions.

“We are committed to Imperial County and to creating lasting economic opportunity,” the company website states. “The project will generate $28.75 million in annual property tax revenue for local schools, fire departments, libraries, and essential services.”

The Imperial County Board of Supervisors is moving toward finalizing the proposal.

Farmland spreads out in front of the Imperial Valley Fair near a proposed data center in Imperial.

Sebastian Rucci, an attorney and chief executive officer of Imperial Valley Computer Manufacturing, said he commissioned multiple studies assessing the proposed center’s potential effect on issues like traffic or the environment that found no or minimal harms. He threatened to pull his proposal if a CEQA review was required.

“CEQA leaves you in an unknown territory — some of the environmental groups have used it for extortion, they sue, they have no basis for the suit but they delay you, and then they can squeeze money out of you for settling the lawsuit,” said Rucci.

The exemption, however, has alarmed residents, who have spoken up at county board meetings and launched a community organization, Not in My Backyard Imperial, to protest the data center and demand a CEQA review.

“It feels like it’s us against the county,” said Camarillo, adding that many feel the board has dismissed their questions and concerns.

None of the Imperial County Board of Supervisors responded to requests for comment.

Resident Fernanda Camarillo’s home is right behind the proposed site of the data center in Imperial.

The center would be a neighbor to Camarillo’s house in Victoria Ranch, a family-friendly area with beige stucco homes topped with terracotta tile roofs. She worries about noise, pollution and spiking utility bills. Power companies that have to upgrade grids to meet data centers’ energy demands sometimes seek to recoup that cost by hiking up rates for all consumers.

Camarillo, a substitute teacher, is also scared for her students. The air quality in Imperial Valley is already so poor that schools use a system of color-coded flags to signal whether it’s safe for children to go outside during gym or recess, she said.

“I think they see [the valley] as easy pickings because we are a low-income community and we have such a large population of Latinos here,” Camarillo said.

A quick drive around the neighborhood shows others share her concerns. Signs protesting the data center pop up throughout the community, displayed on front lawns or nestled into rocky garden beds.

Victoria Ranch was quiet and peaceful on a sunny Sunday in late February. Francisco Leal, a resident and lead organizer for NIMBY Imperial, said that’s a major part of its appeal.

The colorful dusk sky hovers over a Little League baseball game at Freddie White Park in Imperial. The debate over data centers is heating up in the Imperial Valley, a rural desert region in southeastern California.

Leal wants answers about everything from potential health hazards and impacts on the local water supply to whether the fire department is equipped to handle a large-scale electrical blaze. But without a CEQA review, he says residents are left to trust assurances from the developer or privately hired consultants.

Leal plans to sell his property if the project goes forward, but the thought makes him emotional.

“It’s not just a house; it’s a home,” he said. “This is the only home my kids have ever known and all of our family memories are here.”

Gina Snow, another resident, isn’t necessarily against bringing a data center to the county. But she wants the proposal to undergo a CEQA review.

“Clearly we understand that there is economic development and the potential for that to be positive for the county, but at what cost?” she said.

Daniela Flores, executive director of Imperial Valley Equity and Justice, a nonprofit that works for social and environmental equality, stands on the site of the proposed data center.

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Daniela Flores, executive director of Imperial Valley Equity and Justice, a nonprofit that works for social and environmental equality, said the community has good reason to be wary. Various industries have come into the region over the years and made grand promises that never panned out.

“We became a sacrifice zone,” she said, adding industries use the area’s resources while ultimately doing little to permanently improve the lives of most residents.

Flores said the community continues to struggle with a range of problems, including poor air quality, high poverty rates, weak worker protections and crumbling infrastructure. She believes a data center could add new and potentially dangerous challenges.

The valley has long, brutal summers with temperatures that swell to 120 degrees. If the data center strains the grid and causes a lengthy blackout, or low-income residents have their power shut off because they can’t afford the rising bills, Flores fears the situation could quickly turn deadly.

The city of Imperial also has concerns. The city has filed a lawsuit calling on the county to halt the project, arguing it should not have received a CEQA exemption.

The controversy has drawn attention from Padilla, whose district includes Imperial Valley. Padilla has echoed residents’ calls for more transparency from the county and introduced Senate Bill 887, which would ban data centers from receiving exemptions from CEQA.

“I am not anti-data center or anti-artificial intelligence,” Padilla said. But, he added, we need to “find a way to do this right and make sure there is adequate review and understanding.”

A dusty haze settles over the city of Imperial at dusk near the site of a proposed data center.

Another measure from Padilla, Senate Bill 886, would direct the Public Utilities Commission to create an electrical corporation tariff to cover the cost of data center-related grid upgrades.

Other related legislation this year includes Assembly Bill 2619 from Assemblymember Diane Papan (D-San Mateo) that would require data center owners to provide an estimate about expected water usage and sources before applying for a business license, and Assembly Bill 1577, by Assemblymember Rebecca Bauer-Kahan (D-Orinda), which would require data center owners to submit monthly information to a state commission about water and fuel consumption and energy efficiency.

While lawmakers weigh new policies at the statehouse, Camarillo said she hopes the priority will be protecting communities.

“Innovation is important, but innovation for the sake of innovation has never really been something that hasn’t had negative impacts,” she said. “Think about human lives.”

IEA may release more oil as the Iran war hits supply, with chief Fatih Birol warning of a severe global energy crisis.

US President Donald Trump has threatened to ‘obliterate’ Iran’s power plants if Tehran fails to open the Strait of Hormuz to all vessels within 48 hours. This major escalation comes as Trump faces pressure over skyrocketing domestic energy prices due to the now three-week-long war.

Tehran responds to Trump’s threat by saying all US energy infrastructure in the region will be targeted if Iran is attacked.

United States President Donald Trump has threatened to attack Iran’s power plants if freedom of navigation is not fully restored at the Strait of Hormuz within 48 hours, a dramatic escalation as the US-Israeli war on Iran continues for a fourth week.

The statement on Saturday came as Trump faces increasing pressure to secure the vital waterway that Iran has promised to keep closed to “enemy ships”, leading to soaring oil prices and plunging stock markets.

“If Iran doesn’t FULLY OPEN, WITHOUT THREAT, the Strait of Hormuz, within 48 HOURS from this exact point in time, the United States of America will hit and obliterate their various POWER PLANTS, STARTING WITH THE BIGGEST ONE FIRST,” Trump, who is in his Florida home for the weekend, wrote on Truth Social at 23:44 GMT.

He did not specify which plant he was referring to as the biggest.

Following Trump’s threat, the Iranian army said it would target all energy infrastructure belonging to the US in the region if Iran’s fuel and energy infrastructure were attacked.

Trump’s escalatory comments came barely a day after he talked about “winding down” the war that he launched alongside Israeli Prime Minister Benjamin Netanyahu on February 28, when the US and Iran were engaged in nuclear negotiations.

In a social media post on Friday, Trump said the US was “getting very close to meeting our objectives as we consider winding down our great Military efforts in the Middle East”.

Key waterway

Shipping traffic through the Strait of Hormuz, where a fifth of the world’s oil and gas passes through during peacetime, has virtually ground to a halt since the early days of the war.

Iran has said the Strait of Hormuz is open to all except the US and its allies, with Minister of Foreign Affairs Abbas Araghchi saying last week that he had been “approached by a number of countries” seeking safe passage for their vessels.

“This is up to our military to decide,” he told the US television network CBS, adding that a group of ships from “different countries” had been allowed to pass, without providing details.

The head of US Central Command, Admiral Brad Cooper, asserted on Saturday that Iran’s ability to attack vessels on the strait had been “degraded” after US fighter jets dropped 5,000-pound (about 2,300kg) bombs on an underground Iranian coastal facility storing antiship cruise missiles and mobile launchers earlier this week.

The strike also destroyed “intelligence support sites and missile radar relays” used to monitor ship movements, Cooper said.

Reporting from Washington, DC, Al Jazeera’s Manuel Rapalo said there seemed to be a “gap between what the White House appears to want in the Strait of Hormuz and what the US military says they have already accomplished”.

“It is interesting, to say at the very least, to hear Trump talking about a major escalation, given the fact that we’ve been hearing throughout the course of the day how much damage the US has done, supposedly, to Iran’s ability to target oil tankers and vessels navigating through the strait.”

Workers in India’s textile hub Surat are returning home after days without cooking gas, as an LPG crisis linked to Iran war disruptions halts supplies. Industries face shutdowns, while authorities invoke emergency measures to prioritise households.

The war in the Middle East took a serious turn when Israel bombed Iran’s energy facilities, pushing Iran to step up attacks on its Gulf neighbours.

The damage has been significant and will take years to repair. It also has long-term consequences, with Qatar already warning of a reduction in exports.

The escalation is dangerous, experts say, as energy exports from the Gulf region account for a fifth of global output.

So, what are the risks of turning energy facilities into battlefields?

Presenter: Imran Khan

Guests:

Mohsen Baharvand – Former Iranian ambassador to the United Kingdom

Jim Walsh – Research associate in MIT’s security studies programme

John Sfakianakis – Chief economist at the Gulf Research Center

First came the energy shock. Now, the Iran war is hitting something even more basic: Food.

With the Strait of Hormuz blocked, vessels are being rerouted and supply chains are under strain.

The disruption is pushing up the costs of almost everything from factories to supermarket shelves thousands of miles away.

The longer the Iran conflict continues, the greater the pressure on businesses and consumers worldwide.

The United Nations warns that rising food, oil and shipping costs could push an additional 45 million people into acute hunger – taking the global total above its record of 319 million.

Gulf countries are coming increasingly under attack from Iranian strikes as the United States-Israeli war on Iran continues to escalate.

On Friday, Saudi Arabia intercepted multiple waves of Iranian drones and Kuwait Petroleum Corporation said its Mina al-Ahmadi refinery had been targeted by several early-morning drone attacks, leading to some units being shut down.

Gulf countries have repeatedly insisted that their defences are sufficient to repel these Iranian strikes. However, they also have military partnerships and agreements in place with other countries which could potentially provide more assistance as tensions escalate.

In this explainer, we look at what these partnerships are, how they are helping the Gulf and whether they could do more.

What military partnerships do the Gulf countries have?

The Gulf countries have a handful of military partnerships of different kinds.

Qatar

Qatar is home to the largest military base hosting US assets and troops in the region – Al Udeid.

The 24-hectare (60-acre) base, located in the desert outside the capital Doha, was established in 1996 and is the forward headquarters for US Central Command, which directs US military operations in a huge swath of regional territory stretching from Egypt in the west to Kazakhstan in the east.

It houses the Qatar Emiri Air Force, the US Air Force, the United Kingdom’s Royal Air Force, as well as other foreign forces.

Qatar is the second largest Foreign Military Sales (FMS) partner to the US after Saudi Arabia. FMS is the official, government‑run channel the US uses to sell weapons, equipment and services to other governments.

In January, the US State Department said that “recent and significant” sales to Qatar included the Patriot long-range missile system, the National Advanced Surface to Air Missile System, early warning systems, radars and attack helicopters.

On September 9, 2025, Israel struck a residential area of Qatar’s capital, Doha, targeting senior leaders of Hamas including negotiators for a ceasefire in Israel’s genocidal war in Gaza.

On September 29, US President Donald Trump signed an executive order reaffirming support for Qatar, saying: “The United States shall regard any armed attack on the territory, sovereignty, or critical infrastructure of the State of Qatar as a threat to the peace and security of the United States.”

On Wednesday, Israel struck Iran’s critical South Pars gasfield. Soon after, Iran retaliated, hitting a major gas facility at Qatar’s Ras Laffan plant.

In response, Trump wrote in a Truth Social post guaranteeing that Israel would not attack the South Pars field again unless Iran again “unwisely” attacked Qatar.

Trump added that, if it did, the US “with or without the help or consent of Israel, will massively blow up the entirety of the South Pars Gas Field at an amount of strength and power that Iran has never seen or witnessed before”.

There is also a Turkish military base in Qatar as the two countries collaborate via defence cooperation agreements and joint training.

In recent years, Qatar has also strengthened ties with the United Kingdom through joint training and exercises and with France from which it buys weapons.

Earlier this month, UK Prime Minister Keir Starmer said he would send four additional Typhoon fighter jets to Qatar to help with defence.

Despite initially stating that the UK would not permit the US to use UK bases for strikes on Iran, Starmer partially relented on March 1 when he granted a US request to use UK bases for “defensive” strikes on Iranian capabilities.

Nevertheless, Starmer has stated that the UK will not send its own assets or troops or otherwise become involved in the ongoing war.

Saudi Arabia

Saudi Arabia hosts US military assets and personnel at the Prince Sultan Air Base (PSAB), located near Al Kharj, southeast of Riyadh.

Saudi Arabia is also the largest Foreign Military Sales (FMS) partner of the US.

There is no formal mutual‑defence treaty between the US and Saudi Arabia, similar to NATO’s Article 5. Instead, there are defence cooperation agreements between Riyadh and Washington.

Pakistan and Saudi Arabia have had a decades-long security partnership. This was strengthened in September 2025, when the two countries signed a formal mutual defence pact.

The extent to which Pakistan, which shares a 900km (559-mile) border with Iran in its southwest, can and will intervene is unclear, however.

On March 3, Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar told a news conference he had personally reminded Iranian Foreign Minister Abbas Araghchi of Pakistan’s defence obligations to Saudi Arabia.

“We have a defence pact with Saudi Arabia, and the whole world knows about it,” Dar said. “I told the Iranian leadership to take care of our pact with Saudi Arabia.”

An estimated 1,500 to 2,000 Pakistani troops are stationed in Saudi Arabia.

United Arab Emirates

The UAE also hosts US assets and personnel at its Al-Dhafra airbase, including advanced aircraft such as F-22 Raptor stealth fighters and various surveillance planes, drones and airborne warning and control systems (AWACS).

On Thursday, the US announced an $8.4bn arms deal with the UAE, for the Gulf nation to buy drones, missiles, radar systems and F-16 aircraft.

Recently, the UAE has bolstered its military partnership with India. In January this year, the president of the UAE, Sheikh Mohamed bin Zayed Al Nahyan, visited India.

During this meeting, India and the UAE reaffirmed the India-UAE Comprehensive Strategic Partnership. Established in 2017, this is a bilateral agreement focused on defence cooperation, energy security and technology exchange.

The UAE and India do not have a mutual defence-style agreement in place, however.

Oman

The US has long-term access agreements for key air and naval facilities in Oman, notably the Port of Duqm and Port of Salalah, both of which have been subject to Iranian strikes over the past three weeks.

The UK and Oman also have a defence cooperation agreement and conduct regular joint exercises.

Pakistan and Oman also have military ties where they hold regular joint naval exercises.

However, there are no mutual defence commitments in place.

Bahrain

The US operates the Naval Support Activity (NSA) in Bahrain. Home to the US Navy’s Fifth Fleet, the base provides security to ships, aircraft, detachments and remote sites in the region.

Bahrain and the UK also have a comprehensive security pact. Earlier this month, Starmer held talks with King Hamad bin Isa Al Khalifa of Bahrain and confirmed that the UK would send aircraft to bolster Bahrain’s security.

Kuwait

Kuwait hosts Camp Arifjan, a major US Army installation that functions as the main logistics, supply and command hub for US military operations across the Middle East, especially within the US Central Command (CENTCOM) area of responsibility.

On Thursday, the US announced an $8bn arms deal with Kuwait – for air and missile defence radar systems.

In 2023, Kuwait signed an agreement on military cooperation with Pakistan, focusing on joint training and military exercises.

These are not mutual defence agreements, however.

What could these partners be doing to better assist Gulf countries?

Experts say military allies of Gulf nations could provide naval escorts to ships transiting the Strait of Hormuz. One-fifth of the world’s oil and gas supplies are shipped through this route in peacetime from Gulf producers.

On March 2, Ebrahim Jabari, a senior adviser to the commander-in-chief of Iran’s Islamic Revolutionary Guard Corps (IRGC), announced that the Strait of Hormuz – through which 20 percent of the world’s oil and gas is transported – was “closed”. This has contributed to the recent surge in oil prices, which have surpassed $100 a barrel, compared with the pre-war Brent crude price of about $65.

In recent days, countries have been individually scrambling to negotiate safe passage for ships with Iran. A handful of mainly Indian, Pakistani and Chinese-flagged ships have been able to get through as a result.

“Pakistan and India are working with Iran to ensure of safe passage of tankers for their markets,” David Roberts, a senior academic in international security and Middle East studies at Kings College London, told Al Jazeera.

Roberts said that theoretically, the countries could also offer a naval escort for their tankers and other tankers.

“As neutrals, this might be a plausible gambit, but would need the acquiescence of Iran. Support establishing a shipping channel from the monarchies to China, Pakistan, India is plausible with concerted pressure from the three states, but Iran will be reluctant to give up that pressure point.”

Roberts said that European countries on the other hand, are “stretched thinly” when it comes to offering any such military support in the Strait of Hormuz.

He suggested the UK could send “another plane or two” to Qatar to join their joint Typhoon squadron. However, he added that it is difficult to make predictions about what support is likely to be forthcoming.

“Gulf states clearly need support. But it’s not clear what can be offered by anyone,” Roberts said.

He added they likely need more munitions for missile defence but stocks are tight everywhere.

Iran’s strike on Qatar’s Ras Laffan gas facility will cut an estimated 17% of the country’s Liquefied Natural Gas export capacity for up to five years, officials say. The damage is a major blow to the global energy market, which could disrupt supplies to Europe, Asia and beyond.