The situation in Iran has intensified, with Tehran's refusal to engage in talks with the US following the seizure of an Iranian vessel. The UAE's senior scholar has suggested that the country no longer requires US military bases, indicating a shift in defense strategy as it copes with Iranian missile and drone strikes. The UAE has faced significant economic repercussions, with over $120 billion lost in market capitalisation and a 16% drop in Dubai's real estate index since the conflict began. This reflects a broader trend of regional powers reassessing their reliance on US military support amidst rising tensions.
INTERNATIONALPublished 19 Feb 2026 • Published 59 days ago • Updated 2h ago
Iran's Military Conflict with US and Regional Economic Impact
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The conflict in Iran escalates as the UAE considers closing US bases, citing self-defense capabilities amid ongoing Iranian aggression. This shift reflects a significant geopolitical realignment, with the UAE facing severe economic impacts from the war, including a dramatic drop in market capitalisation and flight cancellations.
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