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strikeJul 7, 2026

From missiles to malware: Why the Gulf is stepping up its operational resilience | Fortune

Summary

A surge in cyberattacks, physical strikes on cloud infrastructure and the growing use of AI by both attackers and defenders are forcing Gulf states to rethink how they protect critical digital infrastructure. The importance of enhancing operational resilience across the Gulf has taken on new urgency since the outbreak of the U.S.-Iran war on February 28. In the UAE alone, daily cyberattack attempts surged from roughly 200,000 to as many as 700,000 as geopolitical tensions flared over recent months. Last week, the UAE’s financial sector was targeted by a wave of sophisticated cyberattacks. While they were successfully thwarted, the country’s Cyber Security Council noted that cybercriminals are increasingly using AI to develop more advanced techniques. A report published last month by Help AG, the cybersecurity arm of UAE telecoms operator e&, highlighted how AI has emerged as a force multiplier, enabling attackers to accelerate reconnaissance and adapt techniques in real time. As a result, attack lifecycles are compressing. In the first quarter of 2026, Help AG observed how the use of AI has allowed bad actors to complete attacks 65% faster than before, with some causing damage less than 40 hours after first gaining access. Read more: GCC debt markets have rallied since the ceasefire, but tight liquidity remains a key hurdle “The signal across global research is consistent: attackers are compressing the attack lifecycle,” the report authors noted. “The Middle East reflects the same pattern—but under higher exposure intensity.” The rapid digital transformation taking place across the region has increased its exposure to cyberattacks, often leading to more severe economic consequences. According to a recent IBM report, the average cost of a data breach in the Middle East stood at $7.29 million in 2025—significantly above the global average of $4.44 million. Information security spending across MENA is expected to reach $4.07 billion in 2026, up 10.1% from 2025, according to Gartner. In the GCC, sectors such as financial services, energy, logistics, and government are increasingly operating within automated, highly interconnected digital ecosystems, making them particularly vulnerable to attacks. This vulnerability is accelerating a shift from traditional, reactive security models to continuous, adaptive systems that support broader national security objectives. “Organizations today need security that is continuously adaptive, locally aligned and designed to protect critical infrastructure and citizen data in an AI-driven environment,” said Abdulla Ebrahim Al Ahmed, chief government relations officer at e& UAE. Across the UAE and Saudi Arabia, cybersecurity is increasingly being built into infrastructure planning, with sovereign cloud and locally governed systems becoming core design priorities. Sovereign cloud is a specialized cloud computing environment designed to ensure an organization’s data, metadata, and infrastructure remain entirely within a specific legal jurisdiction. Meanwhile, AI has emerged as a transformative force in cybersecurity, reshaping both offensive tactics and defensive capabilities. While bad actors are increasingly deploying AI to scale and automate their operations, organizations are also leveraging the technology to improve threat detection and accelerate response times. “Across the GCC, AI and sovereignty are already reshaping how digital infrastructure is designed, secured, and governed,” said Aleksandar Valjarevic, acting CEO of Help AG. “The findings of this year’s report show that cybersecurity must now operate continuously, at machine speed, and in direct alignment with national resilience priorities. For organizations, the focus is shifting from adding more tools to building adaptive, measurable and locally aligned security capabilities that can withstand sustained pressure.” The report also noted that collaborative security models are becoming more common across the GCC, particularly in government and critical infrastructure sectors. Cybersecurity spending across the GCC is projected to surpass $9.6 billion by 2032 in response to the increased threat, up from $5.9 billion in 2025, according to business consulting firm P&S Intelligence. For a region that has set its sights on becoming a global AI hub, the U.S.-Iran war has exposed the geopolitical vulnerability of the Gulf’s digital infrastructure. In early March, two Amazon Web Services (AWS) data centers in the UAE were directly struck by drones, while one of its centers in Bahrain was damaged by a nearby drone strike. The attacks forced all three centers offline and triggered outages across banking, payments, delivery apps, and enterprise software throughout the region. AWS was forced to transfer computing workloads to other regions and said that it expected the recovery to be “prolonged, given the nature of the physical damage involved.” The strikes were significant for marking the first time that military attacks had directly targeted and disrupted the data center operations of a major U.S. tech company. AWS’ services in Bahrain have since been targeted in further drone strikes and sustained damage as a result. Sam Winter-Levy, technology and international affairs fellow at the Carnegie Endowment for International Peace think tank, has warned that physical attacks on data centers “are only going to become more common moving forward as AI becomes more and more significant.” Major U.S. technology companies, including Microsoft, Google and Oracle, operate extensive cloud infrastructure across the Gulf. Given Iran’s repeated threats against these facilities, data centers are widely regarded as potential targets in the event of escalating regional tensions. This may lead GCC governments to expand their own data center development plans across multiple sites, instead of relying on a handful of hyperscale campuses, as well as building greater redundancy into networks. Meanwhile, rising security spending and insurance premiums will likely translate into increased costs of building and operating such facilities across the region. “Given the central role of digital infrastructure in national development strategies across the region, the current situation in the Middle East further underscores the need to develop insurance frameworks that account for potential regional instability,” said Elizabeth Heyes, junior technology fellow at the Observer Research Foundation Middle East, in a report published last month. “What makes these risks more challenging is not just their scale, but their interconnected nature: disruptions rarely remain contained, instead cascading across supply chains, financial systems, and physical infrastructure. This raises the question of who ultimately bears the cost, and whether existing systems that insure against disruption are equipped to absorb it.” The Gulf has made significant progress in fortifying its cyber resilience and digital infrastructure, but many argue that its insurance frameworks have not kept pace with the growing systemic risks posed by today’s cybercriminals. While cyber insurance is growing in the UAE and Saudi Arabia, penetration remains low compared with more mature markets such as the US and UK. Many businesses, particularly smaller firms, remain underinsured. Furthermore, many cyber policies exclude or limit coverage for acts of war, state-sponsored cyberattacks or widespread infrastructure failures. These exclusions have become more prominent as geopolitical tensions have increased and now need to be addressed.

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  • Melissa HancockBy Melissa Hancock

    A surge in cyberattacks, physical strikes on cloud infrastructure and the growing use of AI by both attackers and defenders are forcing Gulf states to rethink how they protect critical digital infrastructure. The importance of enhancing operational resilience across the Gulf has

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DUBAI, United Arab Emirates (AP) — Iran attacked a tanker in the Strait of Hormuz early Tuesday, forcing its crew to abandon the ship, while the United States conducted yet another round of airstrikes targeting the Islamic Republic as they struggle over control of the key waterway.

The 10 consecutive nights of U.S. airstrikes haven’t compelled Tehran to loosen its grip on the strait, through which about a fifth of all crude oil and natural gas traded once passed in peacetime. Even as the U.S. and Iran inch closer to all-out war again, Iran’s interior minister traveled to Pakistan, a key mediator in the conflict, for talks.

However, it remains unclear just what new deal could be reached to end the fighting. The interim deal signed last month that was meant to end the fighting has crumbled. Shipping through the Strait of Hormuz has largely stalled. And as fighting intensifies, both sides have targeted civilian infrastructure relied on by millions of people.

“Iran and groups supportive of Iran may target other U.S. interests overseas or at locations associated with the United States and Americans throughout the world,” the U.S. State Department said in a new warning to Americans. The escalation has pushed oil prices higher in recent weeks.

Benchmark Brent crude traded Tuesday above $88 a barrel and regular gasoline in the U.S. climbed to an average of $4 a gallon, keeping pressure on Americans’ wallets ahead of midterm elections this fall. Meanwhile, the U.S. military identified two soldiers who were killed in Jordan in attacks that left a third person missing.

Separately, the military confirmed another death in Iraq on Saturday during the “controlled detonation” of a downed Iranian drone. President Donald Trump took to social media on Monday to warn that “Every time Iran kills an American Soldier they will pay for that killing many times over!

” Trump was planning to attend a ceremony on Tuesday evening at Dover Air Force Base, where at least one service member’s remains were due to arrive. US strikes come as ships attacked The U.S. military’s Central Command said Tuesday it targeted “Iranian military command centers, maritime capabilities, missile and drone launch sites and air defense systems.

” It released more footage of bombings that targeted sites in Iran. “American forces remain postured and prepared to hold Iran accountable for unwarranted aggression toward civilian mariners seeking to freely and openly transit the strait,” the command said.

Iranian state media reported that explosions were heard in Fars, Hormozgan, Ilam, Kerman and Sistan and Baluchistan provinces. However, traffic through the strait has slowed to a crawl during the latest violence. Lloyd's List Intelligence said only three ships transited the strait on Sunday.

The British military’s United Kingdom Maritime Trade Operations center said a tanker came under attack early Tuesday in the strait off Oman, forcing the crew to abandon the vessel. Iran’s paramilitary Revolutionary Guard claimed the attack, as well as two other attacks on ships Monday in the waterway.

The route around Oman has been the one the U.S. military has encouraged ships to travel to avoid Iran’s control. The UKMTO separately reported Tuesday that another previously unknown attack on a ship took place early the previous day. Tehran also hit U.

S.-allied countries throughout the Middle East. Jordan military's said Tuesday that Iran targeted it with five drones and three missiles, all of which were shot down. Bahrain sounded its missile alert sirens Tuesday afternoon as another Iranian barrage targeted the island kingdom, which is home to the U.

S. Navy's 5th Fleet. Nearly 100 US injuries since early July The Pentagon’s chief spokesperson said nearly 100 U.S. service members have been injured since the U.S. restarted strikes on July 7, and 96% of them have returned to duty.

“The vast majority of injuries experienced were minor concussions,” Sean Parnell posted Monday on X in response to a New York Times report that the Pentagon has withheld information about troop injuries from Iranian strikes. He denied that the Pentagon was hiding data about injuries.

However, the Defense Casualty Analysis System, the military’s clearinghouse for reporting deaths and injuries in conflict, has not been updated as of Monday night with the latest attacks. Yemen rebels threaten attacks on other Mideast waterway Yemen’s Houthi rebels announced a maritime embargo against Saudi Arabia on Monday.

The Houthis, who are backed by Iran, said they would block shipping between the Red Sea and the Gulf of Aden by targeting the Bab el-Mandeb, a maritime chokepoint like the Strait of Hormuz, in response to an attack on Sanaa International Airport last week that they blamed on Saudi Arabia.

With the Strait of Hormuz blocked, Saudi Arabia has been relying on a pipeline to the Red Sea to get millions of barrels of oil out to market. The Houthis earlier demonstrated their ability to disrupt shipping there when they targeted ships for months over the Israel-Hamas war in Gaza, with over 100 vessels attacked.

Saudi Arabia’s military said it would keep the waterway open. “All Houthi threats against transiting vessels will be dealt with swiftly and firmly, as such threats are a blatant violation of international law and fall under acts of maritime piracy,” said Maj.

Gen, Turki al-Malki, a Saudi military spokesman. A glimmer of hope for diplomacy Pakistan has intensified diplomatic efforts in recent days to resuscitate the interim deal. Iranian Interior Minister Eskandar Momeni arrived in Islamabad on Monday for two days of talks with Prime Minister Shehbaz Sharif and others.

On Sunday, U.S. Secretary of State Marco Rubio told reporters that the U.S. is still open to negotiating with Iran but that “it has to be real.” “If the door opens to diplomacy — if the guys that want to do something productive for Iran win and take control of that system, or take control of the negotiations — that’ll be a very positive development,” Rubio said.

“That’s not where we are tonight, unfortunately.” Iranian authorities on Sunday said at least 50 people have been killed and 517 wounded in the latest rounds of U.S. strikes. Since the war began on Feb. 28, 17 U.S. service members have been killed.

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US Secretary of War Pete Hegseth posted social media images showing damage to a maritime control tower at Iran’s Chabahar port following reported US military strikes, accompanied by the caption “Iran does not control the Strait of Hormuz.” India’s Ministry of External Affairs stated that the Shahid Beheshti terminal operated by India at the port sustained no damage.

The ministry reiterated its position that civilian infrastructure should not be targeted during conflicts.

Location: Iran
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U.S. strikes Iran and Houthis threaten Saudi Arabia shipping as mediators push 10-day ceasefire - The U.S. has carried out its tenth consecutive evening of attacks against Iran. - Iran attacked a tanker in the Strait of Hormuz early Tuesday, while Houthi militants in Yemen declared a maritime embargo against Saudi Arabia.

- Rystad Energy has warned about the risk of a significant rebound in oil prices. The U.S. completed a fresh round of strikes against Iran on Monday evening as Yemen's Iran-backed Houthis threatened to impose a naval blockade on Saudi Arabia, potentially opening a new front in the Middle East conflict.

The latest cycle of tit-for-tat strikes comes amid reports that regional mediators have presented Washington and Tehran with a proposal for a 10-day ceasefire, a pitch that could put last month's Memorandum of Understanding back on track. The U.S. Central Command said overnight that it had carried out another round of strikes on Iran at 9 p.

m. ET on Monday. "U.S. forces struck Iranian military command centers, maritime capabilities, missile and drone launch sites, and air defense systems to degrade Iran's ability to continue attacking commercial vessels flowing through the Strait of Hormuz," Centcom said in a statement.

It added that commercial vessel transits through the strategically vital waterway were continuing. Centcom forces, the statement said, had facilitated the transit of around 900 commercial vessels and 450 million barrels of crude oil through the strait since early May.

Iran, meanwhile, attacked a tanker in the Strait of Hormuz early Tuesday, forcing its crew to abandon the vessel as it seeks to tighten its control over the waterway, one that typically handles around 20% of the world's oil traffic. Houthi militants in Yemen on Monday declared a maritime embargo against Saudi Arabia effective immediately, a move that could substantially threaten Middle East oil supplies.

The Houthis have repeatedly threatened to close the Bab el-Mandeb Strait during the U.S.-Iran war. The strait is a choke point for commercial ship traffic that connects the Red Sea to the Gulf of Aden and global markets. The militants, in a statement carried by state news, accused the Saudis of laying an "aggressive siege" against them.

Tensions escalated last week after they claimed that Riyadh had bombed Sanaa International Airport. The Saudi-led coalition in Yemen said that it would respond to the Houthis naval blockade with force, reportedly describing such threats as "a blatant violation of international law.

" 10-day ceasefire 'won't be an easy task' Oil prices rose briefly on news of the Houthi statement but later pared gains as energy market participants closely monitored the prospect of a diplomatic breakthrough. International benchmark Brent crude futures with September delivery were last seen trading 0.

5% lower at $88.77 per barrel, having surpassed $90 in the previous session. U.S. West Texas Intermediate futures with August delivery, meanwhile, stood 0.4% lower at $82.88. Strategists at ING said there's some hope of de-escalation between the U.S.

and Iran given the reports that mediators are proposing a 10-day ceasefire. "This won't be an easy task," ING's Warren Patterson and Ewa Manthey said in a research note published Tuesday. "Large divisions remain between the US and Iran. And President Trump said the US would retaliate following the deaths of several American troops," they added.

In a post on Truth Social on Monday, President Donald Trump said: "Every time Iran kills an American Soldier they will pay for that killing many times over!" He added that this directive had been passed on to every leader in the military. Saudi Arabia oil risk Jorge León, senior vice president and head of geopolitical analysis at Rystad Energy, said the Houthis' threat puts approximately 2.

5 million barrels per day of Saudi Arabian oil at risk at a time when traffic through the Strait of Hormuz is at a standstill. "With the Gulf's primary maritime outlet largely closed, the market is increasingly dependent on Saudi Arabia's East-West pipeline and Red Sea terminals to maintain export flows," León said Monday in a research note.

Saudi Arabia's East-West pipeline network, or Petroline, is a roughly 750-mile system that transports crude across Saudi Arabia, connecting Abqaiq on the oil-rich kingdom's eastern Gulf coast to the port of Yanbu on the Red Sea. "Any disruption at Bab el-Mandeb would therefore threaten not only Saudi shipments but one of the few remaining routes capable of compensating for the severe reduction in Hormuz traffic," León said.

"If a ceasefire does not materialize and Hormuz remains largely closed while the Houthi threat to Red Sea shipping intensifies, the risk of a significant rebound in oil prices would be substantial," he added. — CNBC's Chloe Taylor and Spencer Kimball both contributed to this report.

Location: Iran
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A tanker identified as the Kaifan was struck by an unknown projectile northeast of Oman’s Limah in the Strait of Hormuz, according to a July 21 report from UK Maritime Trade Operations. No ships were observed transiting the strait that day. Attribution of the strike and links to prior incidents have not been confirmed by the vessel’s owner.

Location: Strait of Hormuz