Panic in the Gulf as Iran lashes out at US allies


A luxury hotel in Dubai was left in flames on Saturday after Iranian missiles and drones peppered targets across the Gulf states when the Islamic republic retaliated against its US-allied neighbours.

An apparent drone strike at the Fairmont The Palm Hotel on Dubai’s Palm Jumeirah sparked a fire and caused panic on the man-made island that is home to many of the city’s wealthiest residents. Plumes of smoke were also observed near the Burj Khalifa, the world’s tallest building.

In the hours after US and Israeli forces struck sites across Iran, Gulf states bore the brunt of Tehran’s response after the regime followed through on its threats to target US bases across the region if attacked.

“They (Iran) will lash out wherever they can — they cannot afford to think about the nuances of their regional relationships now,” said one western diplomat.

While the vast majority of Iranian barrages were intercepted by the Gulf states’ sophisticated air defence systems, several kamikaze drones appeared to evade them, causing significant damage and some casualties in the tourist hub of Dubai, Bahrain’s capital Manama, Doha and Kuwait City.

Social media posts on Saturday appeared to show the Fairmont hotel being hit by an Iranian drone. An official briefed on the matter later confirmed the hotel’s forecourt had been struck, causing injuries but no deaths.

Katleen Penel, a Belgian entrepreneur, was in her apartment across the street from the Fairmont when the strike took place. “It really shook us, because we are so close. It shook the windows, but luckily nothing broke here,” she said.

Dubai authorities confirmed emergency teams had responded to an incident on the Palm, but said “outdated videos” of “past fire incidents in Dubai” were “misleading”. They warned legal action would be taken against those who published such content in violation of United Arab Emirates law.

Several waves of strikes from late morning through to early evening caused loud bangs across the UAE. The presumed targets were the air bases of Al Dhafra in Abu Dhabi and Al Minhad in Dubai.

Minhad, once an isolated base in the desert, is now surrounded by housing. Residents posted photos of smoke rising from the area.

UAE’s authorities posted pictures of missile debris that fell across tracts of the capital. A Pakistani worker died as a result of the attacks.

Becoming the target of direct military action threatens the economic model of the UAE, and Dubai in particular, which has become the Middle East’s dominant trade, tourism and finance hub.

The emirate has diversified away from reliance on oil revenues by expanding tourism, financial services and commerce — successfully transforming itself into a thriving tax-free metropolis fuelled by large inflows of foreign workers.

As one anonymous person posted on X: “Moved to Dubai for tax shelter and now I’m in a bomb shelter.”

The attacks also hit air travel in the region. Dubai airport, one of the busiest in the world, was closed to air traffic along with others across the Gulf. “The place was absolute chaos,” said one traveller.

With regional air space largely shutdown, companies are not considering evacuations, said Nigel Lea, a security consultant.

“Most companies are now advising staff to stay at home under hard cover and advising staff to be ready to work from home from the beginning of working week, either Sunday or Monday,” he said.

Qatar was also hit by retaliatory attacks, with Iran firing 44 missiles and eight drones targeting US bases and early-warning radars, said a diplomat briefed on the situation. Eight people were injured, one of whom is in a critical condition, the diplomat added.

A projectile falls over Dubai © AFP/Getty Images

The assault was more significant than the barrages from Tehran during the 12-day Israel-Iran war last June. Residents cowered at home as frequent explosions sounded out across the capital, Doha. “Great panic here,” said one resident on an American compound.

A drone attack on Kuwait City’s international airport caused minor injuries to staff and some damage, according to the Gulf state’s civil aviation authority.

In Bahrain, videos appeared to show an Iranian drone striking a US naval facility in the Juffair district of the capital, Manama, where the US Navy’s fifth fleet is based. Other footage identified a drone crossing the Gulf before descending into the base.

Bahrain’s interior ministry said several residential buildings had also been targeted in Manama. The island, which has a majority Shia population under Sunni rule, is a longstanding foe of the Shia-led Islamic republic.

Saudi Arabia was the last Gulf state to acknowledge it had been targeted by Iran. The government said only that it had intercepted attacks on the capital, Riyadh, and the oil-rich Eastern Province, but it did not provide details. An official statement strongly condemned the attacks, calling them “cowardly” and “unjustified”.

For years, the Gulf states, and the UAE in particular, have feared Iranian military strikes in the event of a US-led war on Iran.

The UAE and Saudi Arabia have been seeking to ease tensions with Tehran in recent years and the Islamic republic has sought to improve regional relations as frictions with the west have intensified.

The Gulf states have also refused to allow US forces to launch military operations against Iran from Gulf bases, hoping to avoid any retaliation.

Many in the region also played down the likelihood that Tehran would strike cities such as Dubai, which has long acted as a trade and finance hub for Iran, and many UAE nationals have Iranian roots.

But on Saturday it became clear they were in the line of fire.

Firefighters and rescue workers examine a damaged section of the Fairmont The Palm Hotel after an explosion, with debris and a fallen tree visible.
Fairmont The Palm Hotel following the attack © AP

“It’s bad for the Gulf, for the Emiratis in particular, there’s nothing that gets under their skin more than drones and missiles in the skies of Dubai or Abu Dhabi. It’s the last thing they want to see,” said Firas Maksad of Eurasia Group.

“The Gulf states are very much reviewing their posture towards Iran, and should it continue they will feel compelled to respond,” he said. “That would be another step up an escalatory ladder.”

On Saturday evening loud bangs punctuated the skies over Dubai, with residents bracing themselves for further attacks. “This is gonna be a wild night,” said one.

But the city remained busy as daytime fasting during the holy month of Ramadan ended with evening activities despite the authorities’ request for people to shelter at home.

“There’s lots of business happening,” Penel said. “It’s like normal life needs to keep on going.”

Additional reporting by Najmeh Bozorgmehr in Tehran and Ahmed Al Omran in Riyadh


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