Iran and its proxies have conducted repeated missile and drone strikes on Gulf Arab states including Saudi Arabia, the UAE, Kuwait, Bahrain, Jordan, and Qatar throughout 2026, often framed as retaliation tied to U.S. and Israeli actions in the broader conflict. Recent developments include Houthi attacks on Saudi airports and infrastructure in early October alongside Saudi-led counteroffensives in Yemen, prompting joint Arab and Islamic condemnations of Iranian aggression and calls for de-escalation. Tehran has enhanced missile accuracy and range to target regional U.S. assets and shipping lanes while rejecting accusations of deliberate strikes on civilian sites in Arab countries. These dynamics sustain trader focus on escalation risks amid ongoing diplomatic efforts and scheduled regional security coordination.