Gulf nations seek diplomacy amid Iran's call for military readiness
Tensions are running high in the Gulf, with countries worried that any new US or Israeli strikes could trigger major retaliation from Iran.
Iran's supreme leader has told military leaders to be ready to hit back anywhere, raising fears of a bigger regional conflict.
In response, Gulf nations are scrambling for diplomatic fixes: the diplomatic adviser to the UAE's president, Anwar Gargash, says finding a political solution is more urgent than ever.
IMF warns Saudi contraction, infrastructure damaged
The conflict is already hurting the region's economy, with the IMF predicting Saudi Arabia could shrink by 3.3% in 2026.
Iranian missile and drone attacks have damaged key infrastructure and put civilians at risk; experts warn this could spiral into a wider war.
Meanwhile, peace talks are not getting far: demands over sanctions relief and the US naval blockade lifted are keeping both sides on edge.