14 March 2026

The Iran War Is Jeopardizing the Entire Global Economy

Esfandyar Batmanghelidj

On Sunday, a fire broke out at a data center in Dubai belonging to Amazon Web Services. The facility was stuck by an object, likely shrapnel from an Iranian drone intercepted by the United Arab Emirates’ air defenses. The incident, which may mark the first time in history that a major company’s cloud data center was damaged in a war, is emblematic of the unprecedented nature of the conflict now unfolding in the Middle East. Far from just another war in the Persian Gulf, this is the first conflict since the Second World War to directly impact cities and facilities that serve as hubs in the globalized economy.

When U.S. and Israeli leaders launched military operations against Iran last week, they expected a forceful response. But Iran quickly moved beyond retaliation against U.S. and Israeli forces and opted to externalize the pain of the war by hitting civilian targets across all six of the Gulf Cooperation Council (GCC) states.

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