The war involving Iran has further exposed divisions between two key U.S. allies in the Persian Gulf—Saudi Arabia and the United Arab Emirates. According to a report by Axios, one year after Donald Trump’s visit to the Gulf, the vision of “post-oil stability” is facing mounting challenges, as security concerns and regional tensions weigh heavily on major investments. In Saudi Arabia, the withdrawal of the sovereign wealth fund from the LIV Golf project has been cited as a sign of economic pressure, while concerns have also been raised about large-scale initiatives such as the 2034 FIFA World Cup. Meanwhile, the United Arab Emirates has moved to exit OPEC and is seeking to manage its oil production more independently. The report notes that tensions between Riyadh and Abu Dhabi are not limited to economic issues, but also extend to regional matters such as Yemen, Sudan, and broader foreign policy approaches. The two countries have also adopted differing stances regarding the Iran conflict. Despite these differences, Gulf states continue to possess vast energy reserves and maintain strong security ties with the United States. However, the path toward “post-oil economic stability” has become increasingly uncertain.
