Missiles, Deportations, $800M Oil Bills How UAE’s Iran War Is Squeezing Pakistan:
PUNA/ISLAMABAD – The United Arab Emirates has moved from quiet diplomacy to direct military action in the 2026 Iran war, reshaping Gulf security and sending economic shockwaves to Pakistan.
UAE’s Wartime Role: From Mediator to Participant
After months of denying involvement, new reports claim the UAE secretly struck Iranian oil facilities, including a refinery on Lavan Island in early April, just as a US-brokered ceasefire was announced.
Iran responded with more than 2,800 missiles and drones targeting Emirati airports, ports, and energy infrastructure, hitting Dubai and Abu Dhabi.
The UAE has intercepted 551 ballistic missiles, 29 cruise missiles, and 2,265 drones since February, with 13 dead and 230 injured.
Abu Dhabi says it will not allow its territory to be used for attacks on Iran, yet it backs US efforts to keep the Strait of Hormuz open.
The UAE has turned off ship tracking, used ship-to-ship transfers, and exported oil via Fujairah to bypass Iranian controls. Officials warn any peace deal must guarantee freedom of navigation in Hormuz and address Iran’s missiles and drones.
How Pakistan Is Being Affected:
Iran’s de facto closure of the Strait of Hormuz since Feb 28 has spiked Pakistan’s oil import bill. Weekly energy imports jumped from $300M to $800M at the war’s peak. Over 81% of Pakistan’s oil transits Hormuz, and Brent surged past $120/barrel. The State Bank raised rates to fight inflation as remittances dipped $200M.
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LNG Lifeline via Mediation:
Pakistan is mediating US-Iran talks. That role helped secure Qatari LNG tankers for Pakistan through Hormuz under Iranian approval, easing gas shortages.
Iran allowed shipments “to build confidence with Qatar and Pakistan”.Overseas Workers at Risk: UAE is home to 2M+ Pakistanis who sent $8B+ in remittances last year.
But Iran war tensions triggered UAE deportations of Pakistani workers, especially Shiites. Contract cancellations, visa bans, and job losses are rising in Dubai as tourism and property slump 30%.
Four Pakistanis have died and others injured from Iranian missile debris in the UAE.
Diplomatic Squeeze:
Pakistan’s balancing act—mediating for Iran while assuring Saudi Arabia of defense support—has strained UAE ties. Abu Dhabi was unhappy Islamabad didn’t strongly condemn Iranian attacks.
Meanwhile, Pakistan allowed Iranian planes to park at its bases during US strikes, complicating US relations.
Bottom Line:
The UAE’s direct entry into the Iran war has turned the Gulf into a frontline, not a safe haven anymore and that is proving a costly mistake for its various services sector
For Pakistan, the conflict means costlier fuel, remittance risks, and a high-wire diplomatic act between Iran, Gulf allies, and Washington. With Hormuz still contested, Islamabad’s mediation role may be its best shield—and unfortunately its biggest risk.
