The Strait of Hormuz – a narrow, indispensable artery through which nearly a fifth of the world’s oil and a third of its liquefied natural gas (LNG) flows– stands on a cliff. As geopolitical tensions intensify across the Middle East, fuelled by escalating Iran-Israel tensions and the shadow of direct United States (U.S.) involvement, the once-unthinkable threat of its closure looms larger than ever with Iran’s threat to close or block the Strait. In spite of the catastrophic global implications of such an act, the volatile depths of this potential crisis will be explored, unravelling the motives that could push Iran to choke this global lifeline, exposing the monumental security and geopolitical fallout, and revealing the catastrophic economic shockwave that would consume nations far beyond the region.

On Feb. 28, 2026, the United States and Israel launched a military campaign against Iran, striking more than 900 targets in the first 12 hours and killing Iran’s Supreme Leader Ayatollah Ali Khamenei. The conflict is still raging, with strikes continuing across the country and the region destabilising by the day. Yet behind the missiles and fighter jets lies another revolution in how this war is being fought.   AI, the same technology that millions use daily to draft emails or summarise documents, has become a central instrument of lethal military power. Anthropic’s Claude AI model is embedded inside the Pentagon’s targeting and intelligence apparatus, processing satellite imagery, intercepted communications, and operational data to help commanders decide who to strike, where, and when.   What once required days of human analysis is now compressed into hours or minutes, enabling a pace of warfare that no prior generation of military planners could have executed. AI has been present on battlefields before, from drone guidance systems to satellite image analysis, but the Iran conflict represents its most expansive and consequential deployment to date, and the full implications of that scale are still unfolding.

Between June 13 and 14, 2025, Israel executed one of the most daring and sophisticated military operations in its contemporary history: a multi-pronged aerial strike that penetrated deep into Iranian sovereign territory in an unprecedented fashion. The offensive targeted critical nuclear infrastructure, including the Natanz and Fordow enrichment facilities, alongside additional military installations near Isfahan. Furthermore, the operation struck key airbases integral to Iran’s air defence network, most notably Hamadan and Tabriz airfields. In parallel, Israeli forces targeted senior leadership within both the Islamic Revolutionary Guard Corps (IRGC) and the conventional military, with subsequent intelligence assessments confirming direct hits and casualties among Iran’s high command.   Iran's response, though swift, bore the hallmarks of operational improvisation. Seeking to reassert deterrence and project resilience, Tehran launched over one hundred unmanned aerial vehicles (UAVs) on the same day, primarily of the Shahed-136 and Shahed-131 variants. These drones traversed approximately 2,000 kilometres through Iraqi and Syrian airspace. However, the majority failed to reach Israeli territory. Instead, they were intercepted by a multi-layered defensive network composed of Jordanian, Saudi, and Israeli air defence systems, all heavily supported by U.S. early-warning and tracking technologies. A large number were neutralized over Iraq’s Anbar province and the deserts of Jordan, while others were downed over northern Saudi Arabia.   On June 14, Iran escalated by launching its principal retaliatory strike in the form of a large-scale, coordinated ballistic missile attack. Over 150 ballistic missiles were deployed, prominently including Ghadr-110 (with a range of up to 3,000 km), Khorramshahr, and Sejjil-2—among the most advanced systems in Iran’s medium-range missile arsenal. These missiles targeted multiple sites deep inside Israeli territory. A notable strike occurred near Israel’s Ministry of Defence compound in the Kirya complex in central Tel Aviv, where one missile reportedly caused structural damage and minor injuries, though no fatalities among military personnel were confirmed. Additional missiles struck civilian infrastructure in Tel Aviv, Ramat Gan, and Rishon LeZion, injuring several individuals—one critically—with the majority suffering only mild to moderate wounds.   Despite the magnitude of the missile barrage, the strategic yield fell significantly short of Tehran’s expectations. This underperformance prompted Iranian authorities to broaden the scope of their confrontation, issuing explicit warnings that U.S. military assets across the region—particularly in the Gulf—would henceforth be considered legitimate targets. These threats referenced high-value installations such as Al Udeid Air Base in Qatar, Al Dhafra Air Base in the United Arab Emirates, and U.S. military positions in Iraq, including Ain al-Asad and Camp Victoria in Baghdad, as well as naval facilities in Bahrain.   From Iran’s strategic vantage point, any U.S. involvement—especially in reinforcing Israeli air defences—constitutes direct participation in the hostilities. This rationale is now used to justify Tehran’s threats to strike American military positions across the Gulf. The implications of this shift are profound: for the first time since 2020, the prospect of open military confrontation in the Persian Gulf has become a credible geopolitical scenario. The regional deterrence equation, long balanced on latent threat and calculated ambiguity, has now entered a phase of dangerous volatility.   This analysis seeks to offer a comprehensive examination of the strategic motivations underpinning Iran’s threats to target U.S. military bases in the Gulf region. By synthesizing operational data—namely, Iran’s patterns of ballistic missile and drone deployment—with broader structural dynamics of regional and international power distribution, to elucidate the strategic logic through which American military installations in the Gulf emerge as priority targets within Iran’s evolving deterrence doctrine.

The Feb. 28, 2026 United States–Israeli offensive against Iran represents the most consequential escalation in Gulf security dynamics in over a decade and introduces immediate, medium-term, and long-term risks to global energy stability. The strikes targeting senior leadership and strategic military infrastructure triggered Iranian retaliation across the Gulf region and sharply increased the probability of disruption to maritime energy flows, particularly through the Strait of Hormuz.   While physical supply outages remain limited at the time of writing, markets have responded by repricing geopolitical risk. Crude benchmarks surged on reopening, freight and insurance costs rose materially, and volatility spiked across commodities and currency markets. The core economic question is not whether prices react, they already have, but whether the conflict transitions from a risk-premium shock to a sustained supply disruption.   The Strait of Hormuz remains the central transmission channel. Roughly one-fifth of globally traded oil and more than one-third of seaborne liquefied natural gas pass through this chokepoint. Even temporary interference has outsized macroeconomic implications. Assessing the implications of the crisis requires examining immediate market reactions, potential disruption scenarios, medium-term supply responses, and the longer-term structural consequences for global energy security and macroeconomic stability.

Amid the intensifying confrontation between Iran and Israel throughout 2025, the prospect of a direct strike against Israel’s Dimona nuclear facility has moved from a remote possibility to a plausible escalation scenario. As military operations increasingly target strategic infrastructure on both sides, the regional system faces the risk of a threshold breach—one that could trigger not only military and political consequences but also a multidimensional crisis involving radioactive contamination, mass displacement, and economic collapse across multiple states.   While Israel would undoubtedly bear the immediate brunt—facing mass civilian evacuations, irreversible environmental degradation in the Negev, and the paralysis of its agricultural and tourism sectors—the ripple effects would extend far beyond its borders.   Jordan’s border regions and agricultural zones in the Jordan Valley could face contamination and humanitarian strain, potentially requiring the evacuation of tens of thousands of people. Egypt’s Sinai Peninsula and northern Suez region could suffer fallout exposure, disrupting global shipping through the canal and threatening the Red Sea tourism corridor. Saudi Arabia’s northern provinces, including areas tied to its Vision 2030 megaprojects, could face both environmental and demographic disruption.