onflict in the Middle East has seen each of the Gulf Cooperation Council (GCC) states targeted—and in some cases hit—by Iranian drone and missile strikes. The strikes sparked fires near luxury hotels in Dubai, caused panic at Kuwait’s international airport, and put Saudi Arabia’s largest oil refinery out of commission. Because of the delicate situation the MIDDLE EAST ENERGY show at the Dubai World Trade Centre has been postponed to 1 - 3 September, 2026.
Qatar, which helped mediate an Israel-U.S.-Iran ceasefire in 2025, shut down its liquid natural gas (LNG) exports—20 percent of the global LNG market—after Iranian drones targeted key facilities. Oman has also suffered successive Iranian drone attacks targeting its Duqm port complex.
Iran has warned it will strike electrical plants across the Middle East if US President Trump follows through on his threat to bomb power stations in the Islamic Republic.
The threat by Tehran puts at risk both electrical supplies and water in the Gulf Arab states, particularly as the desert nations link their power stations with desalination plants crucial for drinking water supplies. President Mr Trump has said the US would attack Iran’s power stations unless the country releases its stranglehold on the Strait of Hormuz.
Vital power grids within the Gulf states remains under threat, and many governments have already chosen to covertly deploy emergency generator sets in strategic locations as a response to changing security dynamics.
Missile & drone strikes on energy infrastructure in the Middle East have heightened concerns about supply disruptions and price volatility, leading to a spike in oil prices. While immediate energy supply disruptions appear limited, the situation in the Gulf of Hormuz highlights the importance of diversified energy sources and secure supply chains.
For energy professionals, these events underscore the need for agility in strategy and a keen awareness of geopolitical factors shaping the industry’s future. Iran, for example, currently faces a severe energy crisis due to bomb damage, mismanagement, excessive subsidies, corruption, and international sanctions, which have crippled its infrastructure and distorted energy markets.
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