EconomyFiscal pressure from Iran war clouds Gulf states’ US spending plans

A Peterson Institute for International Economics analysis says the economic strain caused by the US-Israel war on Iran could lead Saudi Arabia, Qatar and the UAE to favor domestic investment over nearly $4 trillion in US commitments announced under Donald Trump’s “America First” agenda. The conflict has increased pressure to spend on defence, energy infrastructure and trade while weakening the countries’ fiscal positions and economic prospects.

Gulf statesIran warUS investmentfiscal pressure

AAl Jazeera★★★★☆2026-09-14 14:34Original