The Gulf countries are spending “enormous amounts of money to try to mask the economic consequences of the Iran war from their population,” Gregg Carlstrom, The Economist’s Middle East correspondent, said on the Haaretz Podcast.

Carlstrom, speaking from Dubai, explained that with the Strait of Hormuz blocked by Iran, Gulf states are flying in consumer goods, food and medicine normally imported by ship “at a huge expense” so their citizens don’t experience shortages or empty shelves in stores. 

However, he warned, by the end of the summer, if the security situation remains precarious and the Strait remains blocked – and especially if active warfare with Iran is renewed – the economic toll will be impossible to avoid, and these countries will worry about their many expat residents packing up and leaving. 

In a conversation with Haaretz Podcast host Allison Kaplan Sommer, Carlstrom described a “roller coaster” of changing attitudes in the Gulf States regarding the ongoing U.S.-Israel-Iran conflict. 

Initially, in March, he said, when the fighting was at its peak, leaders of most of the Gulf countries were “quietly urging the Trump administration to keep fighting until the Iranian regime was overthrown or severely weakened.” By now, he said, the U.S. president “really has lost the support he had in the Gulf,” as leaders unanimously tell Trump that “this needs to end.”  

The same leaders, he said, are harboring “anger at Israel” for what they see as its “major role in pushing America into this war.” As a result, he said, he is skeptical of an expansion of the Abraham Accords, as promised by Trump, in the near future. 

On the podcast, Carlstrom also discusses the expanding confrontation between Israel and Hezbollah in Lebanon, and the failed negotiations to end it due to what he sees as the “poor job” Lebanon is doing managing its relationship with the United States.

Read more:

Israeli Plans for Beirut Strike Place Strain on U.S.-Iran Diplomacy

How Israel's Adventures in Lebanon Are Giving Iran a Second Chance

Report: Satellite Images Show Iran Clearing Entrances to Missile Facilities Buried in Strikes

A 'Stupid, Futile Waste of Lives': The Empty Triumph of Israel's Latest Conquest in Lebanon

Report: UAE Carried Out Dozens of Strikes on Iran in Coordination With Israel and U.S.

The Gulf countries are spending &ldquo;enormous amounts of money to try to mask the economic consequences of the Iran war from their population,&rdquo; Gregg Carlstrom, The Economist&rsquo;s Middle East correspondent, said on the Haaretz Podcast.
Carlstrom, speaking from Dubai, explained that with the Strait of Hormuz blocked by Iran, Gulf states are flying in consumer goods, food and medicine normally imported by ship &ldquo;at a huge expense&rdquo; so their citizens don&rsquo;t experience shortages or empty shelves in stores.&nbsp;
However, he warned, by the end of the summer, if the security situation remains precarious and the Strait remains blocked &ndash; and especially if active warfare with Iran is renewed &ndash; the economic toll will be impossible to avoid, and these countries will worry about their many expat residents packing up and leaving.&nbsp;
In a conversation with Haaretz Podcast host Allison Kaplan Sommer, Carlstrom described a &ldquo;roller coaster&rdquo; of changing attitudes in the Gulf States regarding the ongoing U.S.-Israel-Iran conflict.&nbsp;
Initially, in March, he said, when the fighting was at its peak, leaders of most of the Gulf countries were &ldquo;quietly urging the Trump administration to keep fighting until the Iranian regime was overthrown or severely weakened.&rdquo; By now, he said, the U.S. president &ldquo;really has lost the support he had in the Gulf,&rdquo; as leaders unanimously tell Trump that &ldquo;this needs to end.&rdquo;&nbsp;&nbsp;
The same leaders, he said, are harboring &ldquo;anger at Israel&rdquo; for what they see as its &ldquo;major role in pushing America into this war.&rdquo; As a result, he said, he is skeptical of an expansion of the Abraham Accords, as promised by Trump, in the near future.&nbsp;
On the podcast, Carlstrom also discusses the expanding confrontation between Israel and Hezbollah in Lebanon, and the failed negotiations to end it due to what he sees as the &ldquo;poor job&rdquo; Lebanon is doing managing its relationship with the United States.
Read more:
<a href="https://www.haaretz.com/middle-east-news/iran/2026-06-01/ty-article/.premium/conflicting-u-s-positions-israeli-attacks-on-lebanon-delay-diplomacy/0000019e-82fb-da5c-a9bf-dfffc25e0000">Israeli Plans for Beirut Strike Place Strain on U.S.-Iran Diplomacy</a>
<a href="https://www.haaretz.com/middle-east-news/lebanonnews/2026-06-02/ty-article/.premium/israels-rigid-stance-is-helping-iran-tighten-its-grip-on-lebanon/0000019e-8707-db6c-adff-bfff8cec0000">How Israel's Adventures in Lebanon Are Giving Iran a Second Chance</a>
<a href="https://www.haaretz.com/middle-east-news/iran/2026-05-31/ty-article/report-images-show-iran-clearing-missile-facilities-buried-in-strikes/0000019e-7e8a-d4d4-a59e-7fbb3b6f0000">Report: Satellite Images Show Iran Clearing Entrances to Missile Facilities Buried in Strikes</a>
<a href="https://www.haaretz.com/israel-news/israel-security/2026-06-01/ty-article-magazine/.premium/the-empty-triumph-of-israels-latest-conquest-in-lebanon/0000019e-826a-d16e-a9be-e2eb65450000">A 'Stupid, Futile Waste of Lives': The Empty Triumph of Israel's Latest Conquest in Lebanon</a>
<a href="https://www.haaretz.com/middle-east-news/2026-05-29/ty-article/report-uae-struck-iran-dozens-of-times-in-coordination-with-israel-and-u-s/0000019e-74d6-dc57-a7be-ffffa9e70000">Report: UAE Carried Out Dozens of Strikes on Iran in Coordination With Israel and U.S.</a>

From Haaretz – Israel's oldest daily newspaper – a weekly podcast in English on Israel, the Middle East and the Jewish World, hosted by Allison Kaplan Sommer.

From Haaretz – Israel's oldest daily newspaper – a weekly podcast in English on Israel, the Middle East and the Jewish World, hosted by Allison Kaplan Sommer.

Your audio guide to Israel, the Middle East and the Jewish World.

Haaretz Podcast

From Haaretz – Israel's oldest daily newspaper – the Haaretz weekly podcast in English on Israel, the Middle East and the Jewish World, hosted by Allison Kaplan Sommer. 

From Haaretz – Israel's oldest daily newspaper – the Haaretz weekly podcast in English on Israel, the Middle East and the Jewish World, hosted by Allison Kaplan Sommer.