Al Jazeera’s Tohid Asadi reports from Tehran as the US launches strikes for the 13th consecutive night. Iranian leaders are warning further attacks could lead to retaliation targeting Gulf nations.
The US president’s threat comes after another day of Iranian attacks on Bahrain, Kuwait and Jordan.
Published On 23 Jul 202623 Jul 2026
United States President Donald Trump says he may launch the largest strikes on Iran yet after Tehran carried out another wave of retaliatory attacks on US allies in the Gulf, including hitting a telecommunications tower in Kuwait.
In remarks to US news website Axios on Thursday, Trump said he was “considering a massive attack” that would be “bigger than ever before”.
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“I am close to making a decision. We are all set for it,” Trump said.
The threat raises the stakes yet again in a weeks-long military confrontation in which the US has attacked Iran for 12 straight nights, including hitting bridges and tunnels, according to Iranian media reports.
Iran’s retaliatory attacks have rippled throughout much of the Gulf, sparking fears of a worsening energy crisis.
The spiralling conflict has all but destroyed an interim peace deal signed by the US and Iran last month.
‘Eye for an eye’
Iranian Minister of Foreign Affairs Abbas Araghchi warned on Wednesday that Tehran would retaliate “an eye for an eye” against any future attacks, including those on Iran’s infrastructure.
After another night of US attacks on Wednesday, Iran responded with missile and drone attacks on Jordan, Bahrain and Kuwait on Thursday.
The IRGC also acknowledged attacking a telecommunications tower in Kuwait, saying it was in retaliation for US attacks on telecommunications towers in Iran.
In a statement addressing the Kuwaiti people directly, the IRGC insisted that the US, not Iran, had breached the Gulf state’s “territorial integrity and sovereignty”.
Later on Thursday, Kuwait said that its Abdali border crossing with Iraq had also come under attack by “hostile drones”.
“The armed forces’ retaliatory attacks will continue as long as the US attacks on the country’s infrastructure and coastal areas continue,” said the Iranian army’s spokesperson, Mohammad Akraminia.
Houthis attack Saudi tankers
Meanwhile, Yemen’s Houthi rebels further expanded the confrontation on Thursday by firing at two Saudi tankers in the Red Sea, leading to broad international condemnation and a spike in global oil prices.
“The situation is getting out of control. It is teetering on the edge of the unimaginable,” United Nations Secretary-General Antonio Guterres told a meeting of the Security Council. “One crisis feeds another. One escalation triggers the next.”
The Houthis have declared a blockade of Saudi Arabian ports, destabilising a second key global shipping route: the Bab al-Mandeb Strait.
The Strait of Hormuz has been effectively shut since the US and Israel launched the war on Iran in late February.
Reporting from Sanaa, Yemen, Al Jazeera’s Yousef Mawry cited Houthi sources as saying that the facilities of Saudi Arabia’s national oil company Aramco “could become a future target” of the Houthis if Riyadh does not lift its own blockade on Houthi-controlled ports.
The international oil benchmark Brent crude surged past $100 a barrel on Thursday for the first time in May, in what analysts said could have an even greater impact on the global economy.
“Much of the world’s spare production capacity has already been used, while strategic and commercial oil inventories are lower than when the war began, leaving the market with fewer buffers against a prolonged supply disruption,” said Janiv Shah, vice president of the Rystad Energy consultancy.
Before the war, roughly 15 million barrels of Gulf oil passed through the Strait of Hormuz every day, as roughly a fifth of the world’s traded oil moved through the maritime chokepoint in peacetime.
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With the channel still largely closed and prices elevated, at least seven major pipeline projects are now under construction, in planning or under discussion to push supplies out through the Red Sea, the Suez Canal and the Gulf of Oman instead, according to Gulf officials, energy companies and market analysts.
With the Iran war reignited this month, Brent crude is trading again at around $93 a barrel at the time of writing, well above the roughly $72 it fetched after June’s short-lived truce, and the US benchmark WTI has also risen to roughly $90 a barrel.
Depending so heavily on the Strait of Hormuz “is no longer a prudent long-term strategy,” said Victoria Grabenwöger, a senior researcher at the data firm Kpler.
Two escape valves already exist, and both are close to their limits.
Saudi Arabia’s East-West pipeline, built in the 1980s when Tehran threatened shipping during the Iran-Iraq war, carries crude from the Abqaiq complex to Yanbu on the Red Sea, where tankers head south towards the Arabian Sea or north to the Suez Canal.
Meanwhile, the UAE has been channelling more oil to Fujairah, its port on the Gulf of Oman about 145 kilometres south of the Strait of Hormuz.
Together the two links had a spare capacity of some 3.5 to 5.5 million barrels a day before the war, according to the US Energy Information Administration, and both now run close to full representing around 6.5 million barrels a day.
Abu Dhabi’s state oil company is also racing to finish a project it began before the war.
Its $3 billion (€2.6bn), 300-kilometre pipeline to Fujairah, laid alongside an existing line, is designed to lift deliveries by over 1.2 million barrels a day and is roughly half built, according to Kpler, which expects the official early-2027 completion target to slip to mid-2027 because the port itself must be expanded.
Even that timetable, the firm argues, only became conceivable because of the blockade.
Red Sea relief, Red Sea risk
The Red Sea route has vulnerabilities of its own, and this week served as a reminder.
Yemen’s Iran-backed Houthi rebels, who declared a blockade on Saudi-linked shipping in retaliation for the kingdom’s blockade of Yemen and an attack on Sanaa’s airport, said on Thursday they had attacked two Saudi tankers, the Encelia and the Layla, setting both on fire.
Saudi state media reported a blaze at the bow of the Encelia with no casualties, while the UK Maritime Trade Operations centre reported a tanker struck by “an unknown projectile” southwest of Al Shuqaiq.
The Iran-backed group has disrupted the Bab el-Mandeb Strait before, a maritime chokepoint carrying about 12% of world trade, and a Houthi drone strike forced the East-West pipeline itself to shut back in 2019.
Iraq’s $60 billion bet on Washington
Nowhere is the scramble more urgent than in Iraq, which draws about 90% of state revenues from oil exports and has had to cut output because of its dependence on the Strait of Hormuz.
Prime Minister Ali al-Zaidi returned from Washington last week with 48 agreements signed with American firms, spanning energy, healthcare and technology and worth more than $60 billion, according to Reuters, including tie-ups involving ExxonMobil, Shell, Halliburton, KBR and GE Vernova.
The centrepiece is a deal with Syria to rebuild the long-dormant pipeline running from the Kirkuk fields to the Mediterranean port of Baniyas, a project Iraqi state media says Chevron will execute and which the US State Department, welcoming the plan, called “a critical energy corridor” with an initial capacity of 2 million barrels a day.
Baghdad is also weighing a line from Basra to Jordan’s Aqaba.
Washington’s ambassador to Turkey, Tom Barrack, predicted the agreements would render the Strait of Hormuz “an afterthought”.
Tropical Storm Bertha, which formed Monday, continued to move along the Gulf Coast on Tuesday. Image courtesy of NOAA
July 21 (UPI) — Conditions from Tropical Storm Bertha will continue to spread into Wednesday across parts of the north Gulf Coast, the National Hurricane Center said. Tropical storm conditions are possible in Louisiana by late Wednesday.
The storm, which isn’t expected to become a hurricane before fizzling out, formed Monday night.
The epicenter of the storm was located about 120 miles west-southwest of Panama City, Fla., and 105 miles south-southeast of Mobile, Ala., the NHC said in its 7 p.m. CDT update. The storm was traveling west at 6 mph and had maximum sustained winds of 60 mph.
Winds must reach at least 74 mph for a storm to be considered a hurricane.
There was a tropical storm warning in effect from the Bay/Gulf County line in Florida west to Morgan City, La., metropolitan New Orleans and Lake Pontchartrain. A tropical storm watch was in place from Morgan City, La., west to Cameron, La., and Lake Maurepas. This marked no change from the 4 p.m. CDT update.
“Little change is strength is expected tonight, and gradual weakening is forecast Wednesday through Friday,” the NHC said.
Bertha is expected to produce total rainfall amounts of 2 to 4 inches with isolated higher totals through Thursday along the central Gulf Coast from western Florida into southern Louisiana. This could produce isolated flash flooding, especially in urban areas, the NHC said.
Surf conditions caused by Bertha will continue spreading west along the northern Gulf Coast, with swells likely to cause life-threatening surf and rip current conditions.
For the ninth consecutive night, the United States mounted attacks on Iran’s defence facilities and maritime capabilities into the early hours of Monday, with Tehran hitting back in tit-for-tat strikes as warning sirens blared in neighbouring Gulf countries and Jordan, home to US military bases.
Both sides have accused each other of violating the memorandum of understanding (MoU) they had signed in Islamabad, Pakistan, on June 17. US President Donald Trump has said he views the truce as over, while Iran has said it no longer intends to adhere to the MoU.
Meanwhile, the Strait of Hormuz — through which 20 percent of the world’s oil and gas passed during peacetime — is shut again, sending crude prices shooting up yet again. On Sunday, the US military said another American service member had been killed late last week, bringing the total number of deaths to 17.
So, what has changed in the last two months for the US, Iran and the Gulf countries as the MoU has unravelled in terms of economic impact, widening of military targets, and how they view the war?
A billboard depicting US President Donald Trump lying in a coffin on a building in Tehran, Iran, July 18, 2026 [Majid Asgaripour/West Asia News Agency via Reuters]
Economy
The Strait of Hormuz — the kill switch of the global economy — has been closed down by Iranian authorities, warning that not even a drop of oil shall pass through the waterway amid US attacks and a naval blockade against Iran’s ports.
The MoU had paved a path for the reopening of the strait. And that had briefly pulled oil prices to par with pre-war levels.
The GCC
The strait is of critical importance, especially for Gulf Cooperation Council (GCC) states, which saw their economic security and energy strategy severely affected by export curbs. The war on Iran has brought about the largest disruption to global oil and liquefied natural gas (LNG) supplies in modern history.
The costs go beyond just energy revenue losses, noted Mohammad Reza Farzanegan, an economist at Germany’s Marburg University.
“The conflict also threatens the GCC countries’ diversification strategies. Tourism, aviation, logistics, construction, real estate and foreign investment all depend on perceptions of regional stability,” he told Al Jazeera. “Continued war increases insurance and transport costs and encourages investors and tourists to reconsider their exposure to the region.”
Iran
For Iran, the MoU lifted the naval blockade against Iranian ports and offered oil and banking sanctions waivers, and Tehran rushed to export tens of millions of barrels of crude oil.
The earlier US blockade had curbed Iranian exports, with Iran’s parliament speaker and chief negotiator, Mohammad Bagher Ghalibaf, telling Iranian state TV in an interview last month that “we did not export even one barrel” during the blockade.
However, as fighting resumed, the US disabled a vessel in the Strait of Hormuz, reported to be carrying Iranian crude. Tehran has also hit commercial vessels in the waterway, and the US has been bombing Iran’s coastal areas since then.
“[The renewed US naval blockade] is more damaging than conventional sanctions because the restrictions are now enforced physically,” said Farzanegan. “Iran therefore has much less room to use intermediaries, alternative flags and informal shipping arrangements to maintain oil exports.”
“The immediate consequences are lower foreign-exchange revenues, further depreciation of the rial and stronger inflationary pressure,” the economist told Al Jazeera.
Iran’s economy has been suffering from one of the world’s highest inflation rates. The rial touched nearly 1.9 million against the US dollar this week, a new all-time low. The Tehran Stock Exchange’s main index lost another 120,000 points or 2.4 percent on Saturday to stand at 4.77 million.
The US
Trump’s war has been widely unpopular in the US. The president recorded a 60 percent disapproval rating on the economy, as per the latest CNBC polling, with a net approval rating of -22, reported to be the lowest of his political career.
As per the poll, 61 percent of respondents said they are pessimistic about the state of the economy, the highest percentage since December 2023.
“The effects are most visible in energy prices and consumer purchasing power. This increases household costs and complicates the political position of President Trump and Republican candidates ahead of the November 2026 congressional elections,” said Farzanegan.
A vessel in the Strait of Hormuz, as seen from Musandam, Oman, July 16, 2026 [Reuters]
Military
The US
The US military has had 17 personnel killed in the war with Iran so far. Three of them have been killed since the resumption of the war about 10 days ago.
“We hit them very hard again tonight,” Trump said on Sunday, adding, “We did that in honour of the – probably three – it’s probably three great patriots.”
Two US personnel were killed in an Iranian attack on an airbase in Jordan on Friday, and a third is missing. Another soldier was killed last week in Iraq while defusing unexploded ordnance from an Iranian drone.
Tehran has claimed to have hit several US military facilities in Kuwait, Bahrain, and Jordan, including an aircraft at Aqaba airport.
Al Jazeera could not immediately verify the extent of damage to any facilities.
The Gulf
The renewed attacks from Iran on most Gulf countries, as well as Jordan, have forced them to deploy their interceptors. GCC countries had already used hundreds of expensive interceptors during the first phase of the US-Israel war on Iran in March and April.
But the Iranian military’s attacks have also hit civilian infrastructure in Gulf countries. The bombing of power and desalination plants in Kuwait has drawn widespread regional condemnation.
“What is happening is a severe shock to the GCC countries,” Nader Habibi, an Iranian-American economist, told Al Jazeera. “Now, after the disruptions of the past seven months, even as they have tried to avoid getting involved, the civilian population is indirectly impacted.”
Iran
The US insists that it has focused its attacks on Iran’s military infrastructure, especially on the country’s southern islands — some of which act as forward military or surveillance posts, and others that are believed to host missile bunkers.
But Tehran has accused the US of targeting civilian infrastructure as well in recent days, including bridges and tunnels, ports and dock facilities, power stations and water plants. Iranian officials have said more than 50 people have been killed and about 500 wounded in US attacks in the past three weeks.
Narrative
More than the war itself, a significant part of the messaging from the US and Iran has been over the control of the Strait of Hormuz.
The US
Washington says its renewed attacks are aimed at degrading Iranian capabilities to disrupt maritime traffic in the waterway, with Trump saying last week that “the US controls the Strait”.
Iran
Tehran has pushed back on Trump’s claim.
Farzanegan said Iran’s “ability to influence shipping through the Strait of Hormuz remains a unique source of bargaining power”. “Tehran is therefore prepared to bear considerable costs to preserve this leverage.”
He added that Iran may also calculate that extending part of the economic costs to neighbouring oil-exporting countries will encourage these governments to use their political influence in Washington and push the US towards negotiations.
“This appears to be one reason why Iran is prepared to maintain pressure in the Strait despite the considerable costs to its own economy,” the analyst added.
Aniseh Tabrizi, an associate fellow on the Middle East and North Africa Programme at think tank Chatham House in London, said the significant change since the MoU unravelled “is that there is less optimism than before about diplomacy being feasible”.
“For all the sides, it is difficult to foresee a scenario in which another deal is not only reached, but also implemented successfully,” she told Al Jazeera. “And that makes it particularly concerning for all the parties involved.”
Tabrizi noted that there appears to be “no imminent drive” from the Iranian side to sign a deal. “They are still maintaining escalatory attacks, but also reciprocating the kind of attacks that are conducted against the country,” she said.
Smoke rises from an explosion at an unknown location after a US strike on Iran in this screengrab from a video released on July 19, 2026 [Handout/US Central Command via Reuters]
The Gulf
GCC countries have continued to condemn Iran’s attacks on the regional countries, while calling for diplomacy to dial down the escalation. They have made it clear that Iran’s unilateral control over the Strait of Hormuz would not be acceptable to them.
Tabrizi added that, like the weeks before the Islamabad MoU, regional countries, especially Qatar, are still batting for talks.
If anything, Farzanegan said, the economic losses can bring all the sides to the table again for talks.
“Higher economic losses increase the incentives for negotiations,” he said. “A return to negotiations becomes more likely when both sides conclude that continued escalation cannot improve their bargaining position.”
Economist Habibi agreed that if an agreement is reached again, “it would be primarily because of the stability of the economic pressures on both sides”. However, he added that the probability of escalation in the next couple of weeks is higher than the probability of negotiation.
Iranian strikes have targeted Kuwait’s power and water desalination plant. Al Jazeera’s Victoria Gatenby explains what that means for Kuwait and the rest of the Gulf Cooperation Council countries.
US Central Command says new strikes on Iran are designed to further degrade Iran’s ability to choke the Strait of Hormuz.
By Al Jazeera Staff, AP and Reuters
Published On 19 Jul 202619 Jul 2026
The United States military said Sunday that it launched new strikes on Iran to “swiftly punish” the country’s Islamic Revolutionary Guard Corps (IRGC) for an attack that killed two American service members and left one missing and four requiring hospitalisation.
An area near Sirik in Iran’s Hormozgan province and Qeshm Island have been hit on the eighth consecutive night of US air strikes on Iran, according to Iran’s semi-official Mehr and Tasnim news agencies.
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The attacks happened early on Sunday, hitting Sirik at 1:30am local time (22:00 GMT, Saturday), and Qeshm Island at about 3:38am (00:08 GMT, Sunday) and again at 6:10am local time (0240 GMT) according to Iranian reports.
Tasnim also said the US military targeted a location near Shadegan in Iran’s Khuzestan province at 5:55am (02:25GMT Sunday).
The reports said there were no casualties and that residential and commercial infrastructure was not damaged in the attacks.
In a post on X, US Central Command (CENTCOM) said the US military launched new strikes “designed to further degrade Iran’s ability to threaten commercial shipping in the Strait of Hormuz”.
The post added that strikes were also in retaliation for Iranian ballistic missile and drone attacks on a US base in Jordan that killed the two US service members on Friday.
US Central Command later said its strikes targeted “Iranian military coastal surveillance and air defense facilities, maritime capabilities, and missile and drone storage sites.”
Since the war began in February, 16 US service members have been killed and more than 430 wounded.
The Tasnim news agency said there were reports of explosions in Qom, Arak and Behbahan that were later denied by local authorities.
The governor of Arak said that “the situation is completely normal and so far we have not had any reports of attack or explosion”.
Iranian retaliatory strikes
Tasnim news agency said the Iranian army targeted US military assets in two bases in Kuwait.
A statement from Iran’s military said, “In response to the repeated aggressions of the enemy”, the army targeted a US “ammunition depot at Al-Adiri camp and the Patriot radar and air radar” at the Ali Al Salem base in Kuwait.
“Unforgettable lessons”
Before the latest US strikes began, Iran’s supreme leader warned of “unforgettable lessons” if the US continued its attacks on Iran.
Initially, the battle focused on control of the Strait of Hormuz. But US strikes have now widened to include civilian infrastructure, including bridges and desalination plants for drinking water.
State-run news agency IRNA said the Bonji desalination plant was destroyed, cutting off water supplies to about 10,000 people, and a desalination plant on strategic Qeshm Island inside the strait was damaged.
Iran’s Deputy Foreign Minister Kazem Gharibabadi told state television the US is violating terms of the interim deal and “no longer implementing them”.
Iranian authorities said at least 50 people have been killed and more than 500 wounded in US strikes in the past three weeks.
Late Saturday, the Iranian embassy in India named two girls – Sogand Dardmand and Fatemeh Zahra Akbari – who were among seven killed in a US strike on Bandar Khamir in southern Iran, which took place on Thursday.
Al Jazeera’s Tohid Asadi, reporting from Tehran, said that the last eight nights of US strikes on Iran have caused “anger” and “frustration” among the populace.
“People don’t really know whether they are going to see the continuation of this confrontation, or how long it’s going to take, and also if there is a possibility for a diplomatic settlement to resolve all these complexities and find a long-lasting solution”, he said.
US marines from the 11th Marine Expeditionary Unit have released video showing them boarding M/T Wen Yao in the Gulf of Oman as part of the naval blockade against Iran.
Tehran launched strikes against several countries across the Gulf and wider region overnight as the United States military raised its attacks on Iran.
Reports on Friday morning said that Bahrain, Iraq, Kuwait, Oman and Qatar, as well as Jordan and Syria, had been forced to take defensive action against Iranian missiles and drones, amid a sixth night of US strikes on Iran.
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The escalating US air campaign targeted civilian infrastructure in the south of the country, including telecommunications networks, railway systems, and the Bandar-e Khamir bridge in Hormozgan province, where local media reported on Thursday night that at least seven people were killed.
Tehran has justified its strikes against Gulf and other states by saying it is targeting US facilities in the region, insisting that Washington has used its bases there as launchpads to strike Iran.
In Qatar, which hosts major US military facilities, the security threat level was elevated as loud explosions were heard across parts of the capital, Doha, early on Friday morning.
Warning sirens sounded as residents received security alerts on their mobile phones. Qatar’s security threat level was raised again after the initial alert, but the situation later returned to “normal” after the threats were cleared.
The Qatari Ministry of Interior confirmed on Friday morning that a child who was injured by falling shrapnel during the assault is now receiving medical care. Earlier, Qatar rejected Israeli reports that it was planning to join military action against Iran.
Iran’s army said it targeted US helicopters and reconnaissance aircraft at the Sakhir airbase in Bahrain, according to a report from the country’s semi-official Tasnim news agency.
The Islamic Revolutionary Guard Corps (IRGC) claimed early on Friday to have successfully targeted US monitoring assets in Oman.
In a statement, the military said it destroyed a US air control radar in the northern Ghanim region and a maritime surveillance radar positioned on rocks in the Strait of Hormuz.
The IRGC declared that the critical shipping waterway – which has become the key issue in the latest outburst of conflict between the US and Iran – “remains in the hands of the IRGC Navy’s admirals”.
The IRGC also reported that it hit a US military base in Kuwait early on Friday. It said that the attack targeted a missile defence radar, several key weapons depots and two HIMARS surface-to-surface missile launchers.
In northern Iraq, Kurdish counterterrorism forces reported that US coalition forces shot down eight explosive drones over the city of Erbil, according to the Iraqi News Agency (INA). No casualties were reported.
The Jordanian army announced its air defence systems shot down three Iranian missiles transiting its airspace on Friday morning. No casualties were reported as engineering teams dealt with falling debris.
The IRGC also claimed to have attacked a US special operations command centre at the al-Tanf military base in Syria, according to a Tasnim news agency report.
Call to return to ‘hard-won’ deal
As hostilities between the US and Iran continue to escalate, threatening to spread across the region and curb the global economy, efforts to convince Washington and Tehran to return to negotiations are accelerating.
China’s Foreign Minister Wang Yi and Pakistani counterpart Ishaq Dar called on Friday for an immediate ceasefire and the resumption of dialogue, hoping to save the tentative ceasefire agreed upon last month.
Both countries have sought to mediate in the months-long conflict, which rekindled with renewed fighting over the Strait of Hormuz a month after the signing of a preliminary deal aiming to end the war.
That agreement was “hard-won”, Wang said, adding: “Peace is before our eyes, [we] cannot fall at the last hurdle and even more so cannot lose what we have gained.”
Iran has said 38 people have been killed, and more than 400 injured, in the US attacks since the two sides met in Switzerland on June 22 for talks to end the war through a 60-day negotiation period, the AFP news agency reported.
Investors step in to close Africa’s critical $80B infrastructure financing gap.
Gulf investors are rapidly reshaping Africa’s investment landscape, committing billions of dollars to ports, transport corridors, logistics, renewable energy, and critical minerals as governments across the continent seek new sources of long-term development finance.
The shift gathered momentum in June, when sovereign wealth funds (SWFs), commercial banks, development finance institutions, institutional investors, and corporate issuers launched the Africa–Middle East Corridor. Debuted during the Global Banking & Markets Middle East 2026 conference in Dubai, the initiative aims to mobilize capital for infrastructure, deepen Africa’s debt capital markets, and expand cross-border investment between the Gulf and Africa.
The launch comes at a critical moment for the continent. According to the African Development Bank (AfDB), Africa requires approximately $170 billion annually to finance infrastructure, yet current investment totals only $80 billion to $90 billion, leaving an annual financing gap approaching $80 billion.
The Gulf is positioning itself to help close the deficit.
Investors from Gulf Cooperation Council (GCC) countries announced 73 foreign direct investment (FDI) projects worth more than $53 billion across Africa in 2023, reflecting a decisive shift toward fewer but significantly larger investments concentrated in renewable energy, logistics, critical minerals, transport and digital infrastructure.
China Cuts Back
The changing investment landscape also reflects a broader shift in global capital flows.
For nearly two decades, Chinese policy banks financed much of Africa’s modern infrastructure expansion, underwriting railways, highways, ports, airports and power projects across the continent. Yet, according to the Boston University Global Development Policy Center, Chinese policy bank lending fell from a peak of $28.8 billion in 2016 to $2.1 billion in 2024. Annual lending regularly exceeded $10 billion between 2012 and 2018, but Beijing has increasingly pivoted from sovereign-backed megaprojects to smaller, commercially driven investments.
That retreat has created space for Gulf SWFs, export credit agencies, and commercial banks to expand their presence across Africa.
The United Arab Emirates has emerged as Africa’s fourth-largest foreign investor. Between 2019 and 2023, Emirati investments exceeded $110 billion, including an estimated $70 billion directed at renewable energy.
Several flagship transactions illustrate the scale of that commitment. ADQ’s $35 billion Ras El-Hekma development in Egypt ranks among the largest FDI deals ever concluded on the continent. DP World now operates six African ports and logistics facilities, while Abu Dhabi Ports has secured concessions in Egypt, Angola, and the Republic of Congo, strengthening Gulf influence over strategic maritime trade routes linking Africa with Europe, Asia, and the Middle East.
Renewable energy has become a major pillar of Gulf investment in Africa.
Masdar, Abu Dhabi’s state-owned renewable energy company, has committed $10 billion to develop 10 gigawatts (GW) of renewable energy capacity across sub-Saharan Africa by 2030. Infinity Power, a joint venture between Masdar and Egypt’s Infinity, is now Africa’s largest pure-play renewable energy company, operating 1.3GW of generation capacity in Egypt, South Africa, and Senegal, with a further 16GW under development. Saudi Arabia’s ACWA Power, one of the Middle East’s largest private power developers, continues to expand its renewable energy portfolio in Morocco, Egypt, and South Africa, while Gulf investors are increasingly financing green hydrogen, battery storage, and electricity transmission projects across the continent.
Gulf Capital Steps In
Commercial banks, too, are increasing their African presence.
In March, First Abu Dhabi Bank announced plans to establish its first representative office in Lagos, making Nigeria its West African hub. The lender has already participated in financing the $1.13 billion Lagos – Calabar Coastal Highway, signaling growing Gulf interest in African project finance and structured lending.
“Gulf capital is increasingly vital to Africa because of a strategic alignment of economic needs,” says Phumlani Majozi, senior economist and executive director at the African Markets Institute. “As traditional Western and Chinese funding slows, African countries require enormous investment for infrastructure, energy, and digital transformation, while Gulf states are actively diversifying beyond hydrocarbons. The relationship is evolving from aid-based engagement into long-term commercial integration.”
The trend represents a structural shift rather than a temporary investment cycle, Majozi says, driven by long-term economic diversification strategies such as Saudi Vision 2030 and the UAE’s ambition to become a global investment and logistics hub.
Private-sector advisers see the relationship as rooted in geography and commercial history.
“The Middle East is Africa’s closest neighbor. Trade between the two regions stretches back thousands of years,” said Jacqueléne Coetzer, founder and CEO of Jacqueléne Global Consulting. “Africa and the Gulf do not need to discover entirely new markets; they need to rediscover one another.”
Gulf investors are targeting critical minerals in the Democratic Republic of Congo and Zambia, agriculture in Ethiopia, renewable energy in Kenya and South Africa, logistics in Egypt and Nigeria, and financial services through Mauritius, Coetzer says.
Africa’s bargaining position is also strengthening.
The African Continental Free Trade Area (AfCFTA) is creating a $3.4 trillion integrated market spanning 54 economies. The continent controls roughly 30% of the world’s critical minerals, including copper, cobalt, lithium, and manganese — resources central to the global energy transition.
Individual countries are strengthening their ties across the regions as well. Kenya’s Comprehensive Economic Partnership Agreement (CEPA) with the UAE, signed in January 2025, was the first such agreement between the UAE and a mainland African country. The accord improves business access to both countries’ markets by expanding investment protection and providing a framework for deeper cooperation in trade, logistics, financial services and digital commerce.
“Africa’s leverage has never been stronger,” Majozi argues. “The continent possesses roughly 30% of the world’s critical minerals, the world’s youngest workforce and the AfCFTA’s $3.4 trillion integrated market. The challenge is converting that structural advantage into negotiating power.”
If the Africa–Middle East Corridor succeeds in converting investment commitments into bankable projects, it could become one of the principal channels through which Gulf capital finances Africa’s next generation of infrastructure, industrialization, and capital-market development.
Charles Wachira is a contributing writer based in Kenya.
The United States carried out attacks against Iran for a third consecutive night late on Monday.
Iran has continued to hit targets in the Gulf in several waves of retaliatory strikes on Tuesday, including UAE‑flagged oil tankers in the Strait of Hormuz and US military facilities in Bahrain and Kuwait.
Here is a recap of what has happened on Monday night and Tuesday, and what each side has said.
Where did the US attack Iran?
US Central Command, the military’s regional command known as CENTCOM, said its latest strikes began at 4:45pm ET (20:45 GMT) on Monday and were aimed at degrading Iran’s capacity to attack “innocent civilians and commercial shipping” in the strait.
CENTCOM later announced the conclusion of its strikes and said the latest round of attacks on Iran lasted five hours. It added that US forces “successfully struck military targets across Iran including Bushehr, Chah Bahar, Jask, Konarak, Abu Musa, and Bandar Abbas”.
Iranian state television and semi-official news agencies reported explosions throughout the night across the country’s southern coast, including the port city of Bandar Abbas, and on Kish and Qeshm islands, as well as the town of Jam in Bushehr province.
A projectile that struck western Bandar Abbas caused no casualties, the Fars news agency reported, citing the regional governor’s office.
What areas did Iran target?
For its part, Iran’s Islamic Revolutionary Guard Corps (IRGC) said it had launched a wider retaliatory campaign against US allies and interests across the Gulf.
Iran’s Tasnim news agency reported that Iranian forces had struck several “violating” vessels in the strait, and that a US-made drone had been shot down near Bandar Abbas.
The UAE: The UAE said two of its oil tankers had been hit by Iranian cruise missiles in Omani waters in the Strait of Hormuz. The UAE added that one Indian national crew member had been killed on one of the tankers, and eight other people were wounded.
Iran’s Tasnim news agency said the IRGC hit two “offending” oil supertankers, citing an IRGC statement – apparently referring to the two UAE tankers.
Kuwait: The Iranian army said on Monday that it had carried out a drone attack on US military targets in Kuwait. In a statement posted by state broadcaster IRIB, the army said it launched drones at a US Patriot missile system, fuel tanks, a watchtower, an ammunition depot and communication systems.
Bahrain: The IRGC said it targeted “several weapons storage depots, a satellite communications centre, and a building housing US forces” at al-Juffair Base in Bahrain. It also said it had hit the US Fifth Fleet in Bahrain with missiles and drones.
Air sirens have been heard four times in Bahrain on Tuesday so far.
Jordan: Jordan’s army said it shot down four missiles in Jordanian airspace that were fired from Iran, according to the official Petra news agency. After this, the IRGC said it launched ballistic missiles at US forces and key facilities at an airbase in Jordan.
In a message addressed directly to Jordanians, the IRGC insisted that the operation was aimed at the US military presence in the country rather than at Jordan or its citizens. “You know that we hold no animosity toward your country. On the contrary, we deeply love you, the noble people. You understand the pain and suffering of the Palestinian people better than any other nation, and you are aware of the crimes of the Zionist regime in the massacre of 70,000 Palestinians, including 20,000 children in Gaza, carried out with the direct involvement of the United States,” it said.
What have the US and Iran said?
US President Donald Trump formally notified Congress on July 10 that fighting with Iran had resumed on July 7, invoking his authority to keep US forces in combat for another 60 days without lawmakers’ approval.
At a news conference on Monday, Trump said Iran’s offensive capabilities were being dismantled, but he still thinks a “deal is possible” despite the return to open fighting.
Trump also repeated an earlier demand that Gulf nations help cover the cost of protecting shipping, saying Washington was “protecting a very rich portion of the world” and expected to be paid for it.
On Monday, Trump also threatened to “take out” Kuh-e Kolang Gaz La, also known as Pickaxe Mountain, a suspected nuclear site near the Natanz uranium enrichment facility in central Iran.
Meanwhile, the US blockade on Iran, confirmed by the US Navy-led Joint Maritime Information Centre (JMIC), is due to begin at 20:00 GMT on Tuesday.
The US’s blockade covers Iran’s ports and terminals along the entire southern coastline, according to JMIC.
Ebrahim Azizi, the head of the Iranian Parliament’s National Security Committee, has warned that Iran remains steadfast in defending its red lines, following the formal introduction of a bill to manage the Strait of Hormuz.
In an X post on Tuesday, Azizi wrote: “Last night, coinciding with the downing of US drones, the ‘Strategic Action for the Security and Sustainable Progress of the Strait of Hormuz and the Persian Gulf’ bill was formally introduced in Iran’s Parliament. We remain steadfast in defending our red lines, particularly regarding the management of the Strait of Hormuz.”
What is happening to shipping in Hormuz?
Oil prices rose more than 9 percent on Monday, with Brent crude climbing to about $81 a barrel, its highest level since mid-June.
Kpler, the ship-tracking firm, said crossings through the strait fell by about 52 percent between July 10 and July 12, compared with the previous week.
Iran’s Islamic Revolutionary Guard Corps (IRGC) has targeted US military facilities in Bahrain, claimed it has destroyed radar systems in Oman and hit Jordan and Kuwait in its latest round of overnight retaliatory strikes against the United States.
Tehran’s attacks on Monday came as a response to Washington’s escalating strikes as prospects of peace between the two countries recede.
Here is a recap of the latest attacks:
Where were the latest Iran attacks?
Oman: The IRGC said it attacked Oman as part of its latest phase of retaliation. It said it targeted “the FPS long-range aerial radar and the vessel detection radar in Oman”, adding that these radar systems were destroyed.
Bahrain: The IRGC also said it launched missile and drone attacks targeting “installations and infrastructure of the aggressive US army” in Juffair, Bahrain.
Bahrain’s Ministry of Interior said on Monday that sirens had been sounded in the country as it warned people to remain calm and head to the nearest safe place.
The IRGC earlier said it targeted several facilities at the Sheikh Isa Air Base in Bahrain.
Jordan: Jordan’s military said on Monday that it intercepted and downed “four missiles that entered Jordanian airspace” and came from Iranian territory.
Earlier, the IRGC said it targeted Jordan’s Prince Hassan Air Base with missiles and drones and set fire to several fuel depots and ammunition storage facilities.
Kuwait: The IRGC said on Monday that it also targeted a US surface-to-surface missile base in Kuwait, “setting fire to two HIMARS missile launchers and missile-packed warehouses, completely destroying them”.
HIMARS stands for high mobility artillery rocket systems, which are mobile rocket launchers manufactured by the US.
Earlier, the General Staff of Kuwait’s Army said air defence systems were engaging “hostile aerial targets” inside the country’s airspace.
It said any explosions heard were the result of air defence systems intercepting the attacks and urged the public to follow safety and security instructions.
Where was Iran hit?
The US military’s Central Command (CENTCOM) earlier said it hit “dozens of targets at multiple locations with precision munitions to degrade Iran’s ability to continue attacking international shipping flowing through the Strait of Hormuz”.
These targets included “Iranian military air-defense systems, coastal radar sites, missile and drone capabilities, and small boats”, it said.
CENTCOM said it deployed “US fighter aircraft, naval vessels, one-way attack aerial drones, and one-way attack sea drones for the first time”.
Valiollah Hayati, the deputy governor for security and law enforcement in western Iran’s Khuzestan province, told the semiofficial ISNA news agency on Monday that US forces attacked at least eight locations across Khuzestan overnight.
Hayati also said one person was killed and four were injured when a projectile hit an agricultural water-pumping station in Mahshahr, according to the IRNA news agency.
Iran’s Tasnim News Agency reported on Monday that a US-manufactured LUCAS (low-cost uncrewed combat attack system) suicide drone was “accurately hit and shot down” in Bandar Abbas, a city on the Strait of Hormuz.
What has each side said?
The Iranian Ministry of Foreign Affairs released a statement on Monday condemning the US strikes on targets in Iran.
US President Donald Trump insisted that the Strait of Hormuz was open during an appearance on the NBC TV network’s Meet the Press programme on Sunday.
“They’re very, very evil and sick people. We had meetings with them. They agreed to a deal yesterday, a perfect deal for us. No nuclear, no this, no that, no nothing. They gave up everything. And then after that, they left the room. And then within an hour, they launched a drone at a ship,” Trump said.
When did the conflict reignite?
On July 6, the IRGC struck three commercial vessels, including a Qatari liquefied natural gas tanker, off Oman. Iran accused the ships of trying to pass through the Strait of Hormuz without its permission. Tehran’s interpretation of a key clause in the June memorandum of understanding (MoU) with the US gives it the authority to manage traffic through the waterway.
The following day, the US said it carried out strikes on Iranian military targets. Tehran in turn responded with missile and drone attacks on military bases across the Gulf where US forces are deployed.
On Wednesday, Trump told reporters the MoU was over, and on Saturday, the IRGC said the Strait of Hormuz was closed yet again.
How has this impacted the Strait of Hormuz and shipping?
The number of vessels transiting the Strait of Hormuz has fallen to its lowest level in five weeks, according to shipping data.
Six ships sailed through the strait on Sunday, according to data from the trade intelligence firm Kpler, including the Humanity and the Capetan Andreas, transporting 2 million barrels of Iranian oil and 500,000 barrels of Kuwaiti petroleum products, respectively.
Three empty tankers also entered the Gulf to load oil, according to the data.
Professor Bader Al-Saif at Kuwait University has given his condolences for Qatar’s former Emir Sheikh Hamad Bin Khalifa Al Thani and explains what the late leader meant to Gulf countries.
Iran has mounted attacks on Gulf states and declared the Strait of Hormuz closed after the United States conducted its third round of strikes in a week, in a serious escalation as the ongoing conflict spirals.
Tehran on Sunday claimed attacks on Bahrain, Kuwait, Jordan, Qatar and Oman, calling them its response to renewed US bombings on cities along its southern coast.
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The widescale US strikes came after Iran shut the Strait of Hormuz — a critical waterway and one of the biggest flashpoints in the conflict — accusing Washington of violating a memorandum of understanding (MoU) signed between the two sides last month.
So, where is the conflict headed? Here is everything we know.
Why has Iran attacked Gulf states and closed Hormuz?
Iran launched missile and drone attacks targeting US military bases and facilities in several Gulf states, while the US Central Command (CENTCOM) carried out a third round of strikes targeting radar, missile, and drone sites across southern Iran last week.
The US attacks came after Iran opened fire on commercial vessels in the Strait of Hormuz and announced the closure of the strategic waterway until further notice, with one crew member missing, according to CENTCOM.
Iran’s powerful parliament speaker and key peace negotiator, Mohammad Bagher Ghalibaf, said on Sunday, “The era of one-sided deals is over.”
“We told you: keep your word or pay the price. Reality is knocking,” Ghalibaf posted on X with an image of Article 5 of the MoU, which relates to the reopening of the Strait of Hormuz.
On Wednesday, US President Donald Trump announced that the ceasefire with Iran was over. His statement was followed by Iran’s Supreme Leader Mojtaba Khamenei pledging to avenge his father’s killing.
How did we reach here?
The fragile MoU reached between the US and Iran had several glaring gaps, keeping the door to escalation ajar.
The tensions spilled over into the Strait of Hormuz again last Monday, when Iran’s Islamic Revolutionary Guard Corps (IRGC) struck three commercial vessels, including a Qatari liquefied natural gas (LNG) tanker off the coast of Oman.
The next day, the US carried out strikes on Iranian military targets, and Tehran responded with missile and drone attacks on US bases across the Gulf, prompting Trump to call off the ceasefire.
The tit-for-tat attacks continued. On Saturday night, the IRGC announced the closure of the Strait of Hormuz until further notice after attacking a container ship using what it called an unapproved route. On Sunday, a second vessel on the strait was hit.
Where did the latest US strikes hit?
CENTCOM said its third round of strikes on Iran last week was “holding Iranian forces accountable” for their recent attack on a Cyprus-flagged ship in the Strait of Hormuz.
It said it hit about 140 military targets that “included Iranian missile and drone sites, naval capabilities, ammunition storage facilities, communication networks, and coastal surveillance locations”.
It added that more than 300 targets were struck over the course of three nights throughout the week “to degrade Iran’s ability to attack civilian mariners and commercial vessels freely transiting the strait”.
Iran’s state broadcaster IRIB said the US launched air attacks on the outskirts of the city of Veysian, in the western Lorestan province, while another strike hit a military base in Iran’s Khondab.
Officials from Bushehr, on Iran’s southern coast, told local media that US forces attacked five cities in the province, including Asaluyeh, Dir, Bushehr, Dashti and Tangestan.
Tehran has said the loss of lives and the extent of damage are under review.
Where did Iran hit back overnight?
Since the start of the ongoing conflict in late February, Tehran has accused the Gulf Cooperation Council (GCC) countries of actively supporting US military operations by hosting its bases and allowing it to use their airspace.
Oman
The IRGC claimed a “heavy and surprise” attack on logistics support centres and refuelling platforms used by US aircraft carriers at the port of Duqm in Oman, according to IRIB.
The IRGC’s public relations office told IRIB the sites were “destroyed” in the attack.
Qatar
The IRGC said it also targeted Qatar’s Al Udeid airbase with ballistic missiles and claimed to have destroyed a fighter plane maintenance centre, as well as a command-and-control centre at the base.
Qatar’s Ministry of Defence said it intercepted incoming Iranian fire. Three people, including a child, were wounded as a result of falling shrapnel from the interception of Iranian attacks, Qatar’s Ministry of Interior said.
Kuwait
Iran’s army said it used explosive drones to target a Patriot air defence system, an ammunition depot and a radar site belonging to the US military in Kuwait.
Bahrain
In another wave of drone attacks, Tehran targeted a US communications system and radar site in Bahrain.
Jordan
The IRGC said it targeted US military facilities at Prince Hassan airbase in Jordan with several ballistic missiles, and claimed to have destroyed a command-and-control centre at the base, as well as hangars housing MQ-9 drones.
What’s happening in the Strait of Hormuz?
Iran has closed down the strait after firing a warning shot that struck a vessel travelling on an unapproved route, and said on Sunday it had disabled a second vessel.
The strait will remain closed until “the end of US interference in this region”, the IRGC said.
Iranian officials told state media the US military has been trying to create an “illegal route” through the Strait of Hormuz, causing insecurity in the area.
The narrow-yet-vital waterway — touted as the artery of global trade, hosting 20 percent of energy flow — has been at the centre of tensions between the US and Iran since the preliminary deal was signed.
Tehran has consistently insisted that only routes approved by Iran shall be taken up during transit through the strait. It says it is open to managing the strait only with Oman, the other coastal country.
The US and the GCC countries have rejected Iran’s claim on the strait and demanded that navigation be freed of interference or any sort of fees.
On Saturday, Iranian Foreign Minister Abbas Araghchi landed in Oman, where the leaders discussed the shipping and management of the Strait of Hormuz, the Ministry of Foreign Affairs said.
Tankers and cargo vessels in the Gulf of Oman, along shipping routes linking the Strait of Hormuz and the Arabian Sea, June 16, 2026 [AP Photo]
How have Gulf countries reacted?
Some countries had sirens blaring on Sunday afternoon, with governments asking residents to stay indoors.
Oman condemned Iran’s attacks and said it is taking “all necessary measures to deal with the developments to preserve the safety of the country and its residents”.
In Qatar, the Interior Ministry said the country’s security threat level is high and urged everyone to remain in safe places and avoid unnecessary movement.
The Kuwaiti army said its forces were responding to “hostile aerial targets” in the country’s airspace, adding that the sounds of explosions are the result of its defence systems intercepting the attacks.
Bahrain’s Interior Ministry said air raid sirens were activated, urging residents to remain calm.
The US military says it has struck 90 targets across Iran, hitting ports and infrastructure along the Strait of Hormuz. Iran says at least 14 people have been killed in two nights of attacks, and that it has responded with drone strikes on US-linked sites in the Gulf region.
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Six countries – Saudi Arabia, the United Arab Emirates (UAE), Qatar, Kuwait, Bahrain and Oman – form the Gulf Cooperation Council (GCC), which was created in 1981 following fears of the perceived expansionist ambitions of the new Iranian government.
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Since the 1979 Islamic revolution, Israel has attempted to isolate Iran and its wide network of regional proxy groups. But in a twist of irony, Israeli aggression in this pursuit has pushed some Gulf states closer to Tehran.
When Israel and the US launched strikes on Iran on February 28 – and Tehran responded by attacking Gulf states – they were again forced to reassess their relationship with their neighbour.
Gulf relations with Iran, at present, appear more shaped by realism than reconciliation, but this approach could help them navigate the uncertain road ahead.
“The ongoing conflict … compelled the Gulf states to pursue a more pragmatic relationship with Tehran, one that will include enhanced dialogue to deter conflict,” Farah al-Qawasmi, a researcher at the Gulf Studies Center at Qatar University, told Al Jazeera.
Embracing de-escalation – not Iran
All six GCC member states have welcomed a memorandum of understanding (MoU) signed by Iran and the US last week. But this is shaped more by the Gulf states wanting the war to end rather than a newfound trust of Iran.
“An agreement between the two parties is being [highly] advocated by the Gulf states in [an] attempt to prevent and contain regional conflicts,” al-Qawasmi said.
Shortly after the US and Iran agreed in 2015 to the Joint Comprehensive Plan of Action (JCPOA) – putting guardrails on Tehran’s nuclear programme – Gulf states remained sceptical about their neighbour.
The current war has only heightened these suspicions, but it has also seen regional states seek diplomacy with Tehran rather than military confrontation, despite Iran directly attacking Gulf cities.
“The Gulf states still feel like diplomacy is better than using force to get a deal … to change Iran’s behaviour and to insulate them from Iran’s destabilising actions,” Rob Geist Pinfold, a lecturer on security studies at King’s College London, told Al Jazeera.
Pinfold points out that Iran closed the Strait of Hormuz via drones and missiles, not nuclear weapons, making dealing with that threat a priority for Gulf states rather than Tehran’s nuclear programme.
Gulf states will want a more comprehensive agreement between Iran and the US, rather than the nuclear-focused JCPOA, said Pinfold.
“If you talk to people in Gulf capitals, they will tell you that the nuclear programme is a tomorrow problem for them,” he said.
“The today problem is Iran’s use of drones and proxies to destabilise and undermine the sovereignty of Gulf states, but also states throughout the region.”
US Secretary of State Marco Rubio’s three-day tour of the Gulf, which ends Thursday, is seen as a way of allaying these fears and assuring the GCC that Tehran will not be strengthened by the agreement.
US Vice President JD Vance, left, looks on as Pakistan’s Prime Minister Shehbaz Sharif, centre, speaks and gestures towards Qatar’s Prime Minister and Minister of Foreign Affairs Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani, right, at the start of a quadrilateral meeting between the US, Iran, Pakistan and Qatar [File: Nathan Howard/Pool via Getty Images]
Seat at the table
Mehran Haghirian, the director of research and programmes at the Bourse & Bazaar Foundation, believes Gulf states are in a better position to guide the outcome of the current US-Iran talks than in 2015.
“They are at the heart of the negotiations,” Haghirian said regarding the Gulf states’ role in the current talks.
In its role as a co-mediator, Qatar is essentially representing the GCC and their interests during the talks, while articles five and six of the Iran-US MoU place Gulf states at the centre of the agreement.
Among the biggest concerns for the GCC are the future of the Strait of Hormuz, with Tehran demanding tolls on shipping, and calls for the creation of a regional investment fund for Iran.
“There really cannot be any new Hormuz authority by Iran that would not include other GCC countries,” Haghirian told Al Jazeera.
US Vice President JD Vance claimed last week that the investment fund would be financed by the Gulf coalition, but Rubio said this week that regional allies would not be asked to contribute to any reconstruction fund for Iran.
Qatar’s Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani has described the reported $300bn figure as “aspirational” in an interview with the Financial Times, while no Gulf state has yet said if it will contribute to the fund.
‘Maximum pressure era’
The analysts stress that the GCC is not a monolith – with Gulf states having contrasting and changing approaches towards Iran.
Oman, Qatar and Kuwait were broadly supportive of the JCPOA. Saudi Arabia, the UAE and Bahrain were more sceptical, but even these states publicly backed the agreement, said Haghirian.
When Trump pulled the US out of the JCPOA in 2018, Saudi Arabia, the UAE and Bahrain believed they had “found a partner in DC”.
That led to a “maximum pressure era” that brought a period of brinkmanship in the region, said Haghirian.
Suspected Iran-linked attacks on Saudi Arabia’s Abqaiq-Khurais oil facilities and vessels off the coast of Fujairah in 2019 were “the initial reaction by the Iranians to that maximum pressure” campaign, he added, but paradoxically, this also triggered a recalibration of relations.
“That was enough of a reason for Saudi Arabia [and] the UAE, particularly, to basically restructure their approach towards Iran,” Haghirian said.
The war and accelerated pragmatic rapprochement
While Israel has used war to attempt to increase its presence in the Gulf region – reportedly sending an Iron Dome battery to the UAE – other Gulf states view both Iran and Israel as unsettling forces in the region.
“Israel started the war, which was a destabilising act, and then Iran escalated by targeting the Gulf states, which was in turn a destabilising act,” Pinfold said.
Despite this, the Gulf states targeted by Iran still demonstrated patience and pragmatism in dealing with their neighbour.
Qatar, for example, has played a leading role in mediating between the US and Iran, even after being on the receiving end of Iranian drone and missile attacks.
“All six got attacked, and that’s really a level of foreign policy decision-making that is very difficult for any state to be able to really undertake, considering the fact that it was a military attack,” Haghirian said.
“But again, this pragmatism came out within this context to engage Iran and to actually speak for themselves at these negotiations. This war has really initiated a complete rebalancing of the entire region.”
US Secretary of State Marco Rubio said all Gulf countries oppose a toll in the Strait of Hormuz during a tour of the region following US-Iran talks. Rubio added, “There isn’t a nation on Earth that supports having to pay money to go through the straits”.
US Secretary of State Marco Rubio said Washington will be “completely aligned” with Gulf allies in Iran peace talks. Rubio met Kuwait’s Crown Prince Sheikh Sabah Al Khalid Al Sabah during a visit to the region after the US and Iran signed an MoU.
The Chinese strategy employs research and intelligence institutions working to foster closer ties between Iranian national security institutions and the Egyptian military, aiming to undermine the American presence in the Middle East. Prominent among these institutions are the Middle East Studies Institute at Shanghai International Studies University, the China Institute of International Studies, and the Center for West Asian and African Studies. These Chinese research centers, which shape China’s relations with countries in the region and the Gulf, include the Middle East Studies Institute at Shanghai International Studies University (SISU), which directs studies related to security and defense issues and facilitates direct dialogue between think tanks in Iran and research centers in Egypt. Another example is the China Institute of International Studies (CIIS), which reports directly to the Chinese Ministry of Foreign Affairs and works to engineer diplomatic plans that align Egypt’s strategic interests with the objectives of Tehran and resistance movements in the region. Chinese think tanks and intelligence agencies also rely on a number of People’s Liberation Army-backed space intelligence companies, such as MizarVision and EarthEye. These Chinese companies have provided high-resolution satellite imagery and intelligence data to support operations targeting US bases in the Gulf and the Middle East. These Chinese entities coordinate and plan operations through various mechanisms and initiatives officially launched by China, most notably the Global Security Initiative (GSI). Beijing also uses forums, such as the China-Arab Cooperation Forum, to pressure Middle Eastern and Gulf countries to withdraw foreign forces and end US hegemony in the Gulf and the Middle East. This is framed as ending direct interference in the internal affairs of countries in the region. Beijing is also seeking to establish permanent overseas bases, most prominently the Djibouti naval base in East Africa, to support its regional alliances and ensure the continuity of global supply lines for Chinese interests and investments within the framework of the Belt and Road Initiative.
The relationship between Chinese military and intelligence think tanks and the Egyptian army is highlighted by their shared goal of countering American hegemony and expelling US military bases from the Gulf and the Middle East. China is strengthening its strategic cooperation with the Egyptian army as part of the Djibouti-UAE-Egypt axis, with Beijing relying on Cairo as a key launching pad to secure maritime navigation and reduce American military influence. Beijing is utilizing its strategic institutions and think tanks to provide technological and logistical support to the Egyptian army, aiming to create a regional power capable of maintaining strategic balance in the region against American hegemony and interventions. This escalating security and strategic relationship between the Egyptian and Chinese armies rests on several key pillars, most notably intelligence and military partnership. China aims to train the Egyptian military elite through Egyptian military academies and coordinate threat assessments and mutual monitoring of the military movements of the United States and its allies in the Gulf and the wider region. With the implementation of several joint exercises between the two sides, the Chinese vision crystallized in the (Civilization Eagles maneuvers), which brought together the air forces of China and Egypt. This paves the way for the transfer of military technology and the integration of Chinese systems with Egyptian defenses independent of the West, along with the localization of Chinese military industries in the heart of Cairo. China is negotiating with the Egyptian Ministry of Defense to develop local manufacturing capabilities and transfer defense technology. There are also reports of integrating Chinese systems into Egyptian systems to reduce Egypt’s dependence on American-supplied weaponry. Beijing seeks to create a counterweight to American hegemony in the Middle East and the Gulf. China sees Egypt’s refusal to host any American military bases as a cornerstone of its strategy, relying on the Egyptian and Emirati armies to guarantee regional security as an alternative to the traditional American presence in the Gulf and the Middle East.
Chinese research, military, and intelligence think tanks are working to engineer an asymmetric strategic partnership to end American hegemony in the Middle East and the Gulf. Chinese think tanks, military research centers, and intelligence agencies are operating according to a clear strategic vision aimed at building asymmetrical partnerships in the Middle East and the Arabian Gulf to reduce American influence and establish a multipolar world order. Beijing provides Tehran with technical and intelligence support to deter Washington, while simultaneously seeking to strengthen military cooperation with Egypt as a pivotal regional power. This strategy aims to diminish American influence and secure China’s vital economic interests. The Chinese strategy in the region rests on several pillars, most notably its strategy toward Iran and its technical and intelligence support for the country. China has secretly supplied Iran with advanced satellite technology from its BeiDou satellite system, bypassing Western and American GPS systems, as well as sophisticated air defense systems. This has significantly enhanced the Iranian Revolutionary Guard’s ability to monitor and target American military bases in the region and the Gulf.
The objectives of Chinese think tanks, political, strategic, military, and intelligence research centers become apparent here, as they attempt to plan a path to link Iran to China’s Belt and Road Initiative and transform Iranian military pressure into a tool for destabilizing the US bases deployed in the region and the Gulf. The convergence between China and the Egyptian military is highlighted through the comprehensive strategic partnership between the two countries. Beijing is inclined to strengthen military cooperation with Egypt, capitalizing on its political stability and its geographic location controlling vital maritime trade routes, and to transfer advanced Chinese military technology to Egypt. Beijing has revealed its desire to be a major supplier of equipment to the Egyptian army, such as the J-10 aircraft. This aims to increase Egypt’s strategic maneuvering room and reduce the dominance of Western weaponry.
The stability achieved by the Egyptian leadership is a fundamental pillar supporting the comprehensive strategic partnership, as Beijing seeks to secure its economic and military interests with a stable and influential regional power. Therefore, China is investing in the Belt and Road Initiative, for which the Suez Canal is a vital artery in the Middle East. Cooperation extends to the exchange and transfer of military technology, joint military manufacturing, advanced air defense systems, and the evaluation of potential acquisitions of modern Chinese fighter jets. Furthermore, joint air exercises have been conducted, with the Egyptian Armed Forces carrying out their first-ever joint air exercise, dubbed Eagles of Civilization with China, involving multi-role fighter aircraft from both countries, underscoring the deepening defense partnership between them.
In this context, China relies on the Egyptian military within the framework of its strategic and African axis to counter American influence. For China, Egypt represents its strategic gateway to the African continent and a cornerstone in its maneuvers against the US Africa Command (USAFRICOM). In addition to joint military exercises, China and Egypt have conducted joint air force drills, a clear indication of an unprecedented military rapprochement that has drawn close American scrutiny. With China’s move to transfer technology and arms deals to Cairo, it is positioning itself to support the Egyptian army with advanced air defense systems, such as the HQ-9B. This enhances Egypt’s air deterrence capabilities and forms part of strategic military deals aimed at reducing dependence on the United States and its Western allies. On the other hand, China relies on Iran as a deterrent and direct driver, exerting pressure on American bases in the region. Iran represents the spearhead of China’s brinkmanship policy against American military bases in the Gulf, Iraq, and Syria, with Tehran threatening to strike them should any regional conflict erupt. In conjunction with the economic and diplomatic alliance between Beijing and Tehran, China uses emerging alliances, such as the BRICS group and the Shanghai Cooperation Organisation (SCO), to establish Iran’s political foothold. It sometimes resorts to mediation policies as a tool to reduce the likelihood of a direct confrontation with Iran, which could harm its commercial interests, such as China’s sponsorship of Pakistani mediation efforts between Iran and the United States to stop the war against Iran and allow the Strait of Hormuz to be opened to global trade and navigation.
China’s major objectives in the Middle East lie in a strategy of attrition against the United States. China uses Iranian actions as a clever pressure tactic to test and deplete American military technology without direct involvement in wars of attrition, while simultaneously attempting to create a new regional order. Here, Chinese intelligence agencies coordinate networks of overlapping interests to push countries toward understandings that transcend the American security umbrella, paving the way for the future withdrawal of foreign military bases. The pillars of China’s strategy for alternative hegemony are based on asymmetric partnerships. Beijing focuses on presenting itself as a reliable economic and technological partner without political conditions or interference in internal affairs, unlike the American model based on conditionality and direct military alliances. With China’s emphasis on the economy as a gateway to security, it utilizes the Belt and Road Initiative and its massive investments in infrastructure and ports, such as the Khalifa Port in the UAE and the Port of Duqm in Oman, to solidify its strategic presence and transform economic dependence into long-term geopolitical influence. With Beijing’s use of security diplomacy and mediation, Chinese decision-making centers have adopted a common security approach and offered political mediation, such as sponsoring the Saudi-Iranian agreement, to solidify Beijing’s role as an international peacemaker and portray the United States as a destabilizing force through the militarization of the region. This is coupled with China’s technological and intelligence penetration of the region and the Gulf, where Chinese partnerships focus on transferring 5G technologies, artificial intelligence, and space cooperation with Gulf states. This grants Beijing intelligence-gathering capabilities and allows it to connect the region’s vital systems to the Chinese technological infrastructure. Chinese think tanks and intelligence agencies are planning to cautiously fill the void, as China avoids direct military confrontation with Washington in the region and prefers to capitalize on the Gulf states’ desire to diversify their partnerships and hedge against the gradual decline of American interest in the Middle East.
Accordingly, we analyze that China’s military strategy in the Middle East and Africa relies on building defense partnerships with diverse objectives. It utilizes the Egyptian army as a pivotal regional power to bolster its influence and counterbalance the American presence through advanced training cooperation while simultaneously leveraging its relationship with Iran to exert pressure on American bases, particularly in the Gulf, and secure its oil interests all within a comprehensive policy aimed at dismantling American hegemony in the region.