A banner — depicting missiles and drones flying past a torn Israeli flag, with text in Persian reading ‘the next slap will be harder’ and in Hebrew ‘your next mistake will be the end of your fake state’ — hangs on a building at Palestine Square in Teheran, Iran, on Sunday. - AFP pic
A banner — depicting missiles and drones flying past a torn Israeli flag, with text in Persian reading ‘the next slap will be harder’ and in Hebrew ‘your next mistake will be the end of your fake state’ — hangs on a building at Palestine Square in Teheran, Iran, on Sunday. - AFP pic

GULF states are pushing to stop a full-blown regional war after Iran's unprecedented retaliatory strikes on Israel, sources in the region said, fearing new escalation could put them on front lines of a conflagration and ruin plans to reshape the region.

Saudi Arabia and the United Arab Emirates (UAE) in particular may be well placed to triangulate between Iran, Israel and the United States after diplomatic advances in recent years that benefited all those countries.

Allies of Washington, Gulf monarchies have sought to stabilise ties with Iran and Israel to resolve longstanding security concerns and allow them to focus on national projects.

The UAE and Bahrain signed a normalisation deal with Israel in 2020, and Saudi Arabia was considering a similar agreement also involving a US defence pact until the Gaza war torpedoed diplomacy. Riyadh also buried the hatchet with Teheran last year after years of feuding.

However, the policy of detente now faces its greatest ever threat as the risk to wider regional peace raised by Israel's conflict with Iran-backed Hamas in Gaza since Oct 7 comes to a head.

A direct war between Israel and Iran could swiftly expand to Gulf states whose airspace lies between the pair, and which host several military bases of the United States, which has vowed to defend its ally Israel.

"Nobody wants an escalation. Everybody wants to contain the situation," said a Gulf source close to government circles, adding that there was probably wide telephone diplomacy under way.

"The pressure is not on Iran alone. The pressure is on Israel not to retaliate," said the source, adding that the fallout of an Israeli attack on key Iranian sites "will affect all the region".

Another Gulf source with knowledge of official thinking said Gulf states, Iraq and Jordan are pushing both Iran and Israel's main backer, the US, not to escalate.

Washington was already pressing Tel Aviv to show restraint, both sources said.

At the same time, the US was using Gulf countries to convey messages to Iran not to escalate any further, the source with knowledge of official thinking added.

"It is clear that America is using Gulf Arab allies to convey messages between Iran and the Americans.

"Saudi Arabia is maintaining contacts with Iran and there is an understanding to contain things."

"The Iranians took their shot," said Abdulaziz al-Sager, head of the Gulf Research Centre close to government circles, indicating that for Teheran, the escalatory phase was over, and adding that the US did not want an escalation from Israel.

There have been many recent reminders of Gulf states' vulnerability.

Iran on Saturday seized a cargo ship in the Strait of Hormuz, the narrow stretch of water through which most Gulf energy exports pass, and has threatened to close shipping lanes there entirely.

Meanwhile, Yemen's Iran-backed Houthi group, against which Saudi Arabia was fighting for years until moving to a peace deal in December, has repeatedly attacked shipping and deployed drones towards Israel skirting Saudi airspace in recent months.

The Houthis had several times attacked key Saudi Arabian energy facilities in recent years before the peace talks gained momentum last year and retain the capacity to do so again.

"A conflagration will see the price of oil shooting up. The traffic of oil will be affected," the source said, describing likely outcomes of a wider regional war.

De facto Saudi ruler Crown Prince Mohammed bin Salman has for years tried to focus on his ambitious vision to develop mega projects in the kingdom free from geopolitical distractions.

Saudi economic ambitions were at the heart of Riyadh's push for detente with Teheran, but the kingdom was also concerned about security, said Saudi analyst Aziz Algashian.

"It's not just about the projects in our prosperous region... It doesn't want to be caught in the crossfire between Israel, Iran and the US."

The war in Gaza had already put policies of entente under strain.

The UAE and Bahrain made peace with Israel in 2020 through the Abraham accords and Saudi Arabia was considering following suit.

Meanwhile, Saudi Arabia and Iran last year entered into a deal to restore diplomatic ties and avoid harming each other's interests. But the devastation in Gaza derailed further moves towards peace with Israel.


The writers are from Reuters