Iran's strategy involves striking non-combatant US allies like the UAE and Saudi Arabia. This imposes broad regional pain, demonstrating to the world that the economic and political costs of attacking Iran will be too high for anyone to bear, thus restoring long-term deterrence.

Unable to achieve a decisive military victory, the US and Iran are locked in a "game of uncle." The US aims to inflict maximum damage on Iran's infrastructure, while Iran targets the global economy to create international pressure on the US to cease hostilities.

Adversaries now understand that Western financial markets are a key vulnerability. Iran is incentivized to attack energy infrastructure not just for physical disruption, but to directly target market sentiment and trigger financial instability, making economic warfare a primary strategy.

According to a UAE diplomat, Iran's massive missile attack was a calculated strategy. By targeting the Gulf's civilian infrastructure (95% of targets), Iran aimed to pressure global markets and, by extension, compel Washington and its allies to stop the war.

The specific targeting choices in the initial Iran strikes—leadership, navy warships, and military infrastructure—suggest the primary goal is economic control, specifically securing the Strait of Hormuz. Had the true objective been nuclear deterrence, the focus would have been on destroying nuclear facilities, which was not the case.

The conflict's new phase focuses on inflicting economic pain. Both sides are attacking vital, non-military infrastructure like oil fields, fuel depots, and water desalination plants to test which economy can withstand more damage.

Instead of only retaliating directly against a superior military power like the U.S., Iran escalates "horizontally." It uses drones and missiles to attack the economic interests (tourism, airports) of U.S. allies, pressuring them to expel American forces from their countries.

By targeting hotels and airports in allied nations like the UAE and Saudi Arabia, Iran is waging economic warfare. These attacks aim to disrupt tourism, which constitutes 5-10% of these countries' GDP, creating domestic pressure on their leaders to break ties with the U.S.

Iran's attacks on Gulf states are a calculated strategy to distribute the conflict's costs. By disrupting commerce, tourism, and daily life across the region, Tehran hopes to generate enough pressure from Gulf leaders on the US to end the war with security guarantees for Iran.