Iran's retaliatory missile and drone operations against U.S. military facilities in Arab Gulf states have sustained regional tensions into early October 2026, following the February killing of Iran's Supreme Leader and subsequent U.S.-Israeli strikes. Tehran frames these actions as defensive responses targeting foreign bases, while Arab governments including Saudi Arabia, Jordan, Bahrain, Kuwait, and the UAE report intercepts, infrastructure alerts, and condemnations through the Arab League and GCC, viewing them as sovereignty violations. Recent developments include September ballistic missile activity near Saudi ports like Yanbu and Taif, Houthi proxy strikes on Saudi targets, Iranian warnings against Gulf facilitation of U.S. operations, and October diplomatic exchanges rejecting Arab League accounts of the strikes. These cycles, alongside stalled diplomacy and energy infrastructure risks, shape trader assessments of further direct Iranian actions against Arab countries before any resolution deadline.