Gulf States Rebel Against US Iran War, Economic Pressures Mount

According to Chas Freeman, a former US ambassador to Saudi Arabia, Gulf States, excluding the UAE, are establishing a working relationship with Iran. This shift limits President Trump's military strategies as crucial nations refuse to allow airspace and bases for a potential bombing campaign. The World Bank has revised its 2026 GDP growth forecast for the region down from 4.4% to 1.3%, with Oxford Economics suggesting a recession is on the horizon. Damage to energy infrastructure from the war is estimated at $58 billion. In Dubai, hotel occupancy is expected to fall from 80% to 10%. Over 30,000 flights to the Middle East were canceled in the first month, and jet fuel prices have surged by 90%. Jebel Ali Port has experienced a 40% decline in vessels. China has contradicted the White House's account of the Trump-Xi summit by affirming Iran's sovereignty over the Strait of Hormuz. Iranian lawmaker Ebrahim Azizi stated that Iran intends to implement fees for passage through the Strait. Toyota and Nissan have issued warnings about motor oil shortages, with Nissan reporting a 45% reduction year-over-year. Potato futures have skyrocketed by over 700% in the last month. Additionally, the ceasefire between Lebanon and Israel has been extended for another 45 days, with a security track established at the Pentagon.