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Gulf AI in the US-Iran crossfire

The war has hit Gulf’s key economic arteries — oil refineries, export terminals, airports and, notably, cloud infrastructure — raising new questions about the resilience of the region’s diversification agenda.

A food delivery driver rides close to a plume of smoke rising from the Zayed Port following a reported Iranian strike in Abu Dhabi, on March 1, 2026. — Ryan Lim / AFP via Getty Images

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With all eyes on the US-Iran war this week, the potential for an oil price shock looms large — and the conflict has already delivered a shock to the Gulf’s technology sector, with strikes targeting data centers, disrupting connectivity and halting e-commerce. In the process, the region’s tech and artificial intelligence ambitions have suffered a major blow. 

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