Sanctions or missiles? Why Gulf may not relish Trump’s new Iran approach

What the report says

Al Jazeera reports that the Trump administration is shifting its approach toward Iran from missile strikes toward a broader economic campaign, with US Treasury Secretary Scott Bessent announcing “Operation Economic Outcast” on Monday. The measures aim to squeeze Tehran’s remaining revenue streams and warn banks, companies and foreign partners about the risk of secondary sanctions if they keep doing business with Iran. The package, according to the report, targets sectors including digital assets, technology, gold, aviation and shipping, and includes sanctions on dozens of entities, vessels and individuals across several countries.

The article says the change comes after months of war between the United States, Israel and Iran failed to deliver a decisive result, while the conflict has also affected Gulf security and trade. Iran has threatened retaliation against countries that align with Washington’s economic campaign, including possible disruption around the Strait of Hormuz, a critical route for global energy shipments. That leaves Gulf states balancing their ties to the United States with the risk of provoking further Iranian response.

Al Jazeera notes that the United Arab Emirates has moved the furthest so far by cutting trade ties with Iran, while Saudi Arabia, Qatar and Oman may prefer to keep diplomatic channels open. Analysts cited in the report say the UAE’s move reflects both its exposure to Iranian attacks and its closer security relationship with Washington and Israel. More broadly, the report suggests the Gulf’s concern is that tougher sanctions could prolong the confrontation rather than resolve it.