The escalating war involving Israel, the United States, and Iran is sending powerful economic shockwaves across the Middle East. According to a report by Financial Times, Gulf states are reviewing billions of dollars in overseas investments as rising security costs, energy disruptions, and regional instability threaten to strain national budgets. Officials say governments in key Gulf economies — including Saudi Arabia, United Arab Emirates, Kuwait, and Qatar — are assessing financial commitments and considering invoking force majeure clauses in contracts. With tensions escalating and shipping slowing through the vital Strait of Hormuz, analysts warn the war could disrupt global energy markets and force Gulf governments to redirect spending toward defense and domestic stability, potentially reshaping global investment flows.