Iran has escalated its attacks on Gulf neighbors, targeting Dubai and Abu Dhabi with missiles and drones, triggering fires at luxury hotels and the iconic Palm Jumeirah. The strikes, retaliation for U.S.-Israel strikes, have suspended operations at DP World's Jebel Ali port – the Middle East's largest container hub and 36% of Dubai's GDP. Smoke near the Burj Khalifa and debris at Abu Dhabi's Etihad Towers underscore the vulnerability of the region's financial heart.

Analysts warn this could cripple Dubai's economy, which relies heavily on expats (88% of population) and finance. Marko Kolanovic, former JPMorgan strategist, cautioned this poses a global risk, potentially sending shockwaves through markets already shaken by the 2009 Dubai crisis. The attacks also closed Gulf airspace, disrupting airlines, and raised fears Iran might close the Strait of Hormuz, halting shipping. Until Iran's demands are met, the Gulf's status as a financial haven faces catastrophic risk.