Trump's Iran War Alienates Gulf Allies Despite Business Ties
Donald Trump's attempts to woo the Middle East with high-profile visits and lucrative business deals have been undone by his chaotic Iran war, leaving Gulf leaders eager to see both the conflict and the US president's meddling come to an end. World affairs editor Sam Kiley reports that the president's actions have sparked a significant shift in regional dynamics.
Saudi Arabia's Strategic Loan to Pakistan Highlights US Diminishment
Amid diplomatic efforts to curb market chaos from Israeli-American attacks on Iran, Saudi Arabia extended a $3 billion loan to Pakistan. This move was not mere generosity but a calculated political act that further erodes US power in the region. Riyadh provided the funds to help Islamabad meet a debt repayment to the United Arab Emirates, averting a default and embarrassment as Pakistan plays a central role in global events.
This loan coincides with Saudi Arabia and other Gulf nations, many with deep economic ties to the Trump family and the US, pressuring the 47th president to end his blockade of the Strait of Hormuz. Most of Saudi Arabia's oil exports, along with fossil fuels from the broader Gulf region, traverse these straits. While the Saudis can export about 4 million barrels weekly via a 1,200-mile pipeline to Yanbu on the Red Sea, their economy faces severe risks if western export routes are disrupted, as seen previously by Yemen's Iranian-allied Houthi rebels near the Gulf of Mandeb.
No Strategic Gains for Gulf Nations from Iran Attacks
The Israeli-American assaults on Iran have yielded no strategic benefits for Saudi Arabia or other Gulf states. Riyadh had been improving relations with Tehran and shifting away from the US since the Obama administration. Trump made a theatrical push to revive commercial ties, with his first foreign trip in his initial term to Saudi Arabia. Qatar gifted him a new aeroplane, and its investors acquired significant stakes in firms linked to his family and friends. Saudi Arabia's public investment fund injected $2 billion into Affinity Partners, a private equity firm founded by his son-in-law Jared Kushner.
In January 2025, Sheikh Tahnoon bin Zayed Al Nahyan, brother of the UAE president and chair of the emirates' $1.5 trillion investment fund, invested $500 million in the Trump family's cryptocurrency company, World Liberty Financial. Shortly after, Trump lifted a ban on sales of Nvidia's high-end microchips to the UAE. However, these financial relationships hold little weight as the region faces retaliatory bombardment from Iran and the US illegally closes international sea routes like the Straits of Hormuz.
Gulf Leaders Express Distrust and Seek Alternatives
A leading Saudi businessman stated, "There's no love or admiration for Trump here. There is a long-term suspicion that the Americans cannot be trusted, and if they cannot be held tightly through financial relationships, then we'll look elsewhere for strategic friends." This sentiment is echoed across the Gulf, where leaders are actively pursuing other alliances.
Last year, Saudi Arabia and Pakistan signed a defence pact. Now, Pakistan's prime minister is visiting Riyadh, Turkey, and Qatar this week in a diplomatic push to end the Iran conflict and reopen the straits. Islamabad recently hosted direct US-Iran talks that failed to achieve peace, but there is strong momentum to renew efforts. Trump told Fox News he believes the war could end "very soon," yet his contradictory statements—threatening to end Iranian civilization one moment and claiming victory the next—mean his words cannot be taken as reliable US policy.
US Influence in the Gulf Declines Sharply
A Gulf diplomat with extensive US experience remarked, "The result of all this is that US power and influence in the Gulf has been 'obliterated.' Like the Europeans, we now have to ensure we have more reliable friends." This shift underscores how Trump's Iran war has backfired, leaving Gulf leaders not only keen to see the conflict end but also to reduce US interference in their affairs.
