The Iraqi oil trap and its paradox: A rentier economy amidst geopolitical shocks

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In an economy dependent on oil exports, and with the disruption of crude oil tanker traffic through the Strait of Hormuz due to the US-Iranian war, the core of the problem lies not only in the volume of exports and the revenues generated from them, but also in how these revenues are managed, and in the amount of spending that depletes them. On September 22, 2026, Iraqi Prime Minister Ali Zaidi told The New York Times that Iraq had lost nearly $60 billion in oil revenue due to the war with Iran. For approximately two months, Iraq was unable to export 90% of its oil, while 90% of its economy depended on crude oil exports. Before June 2025, when the first round of the US-Israeli conflict with Iran erupted, the Central Bank of Iraq’s reserves had exceeded $110 billion, but by October 2026 they had fallen to less than $60 billion. Although Zaidi’s government managed to balance global polarization and geopolitical tensions during its first five months in office, the biggest problem was the i...

Water could become the Gulf's next battlefield


 
By Dr. Pshtiwan Faraj | Kurdish Policy Analysis

Water Could Become the Gulf's Next Battlefield

As missiles target desalination plants, the Middle East's next strategic conflict may be fought not over oil—but over water.

The Iran-Israel-U.S. conflict has revealed a new strategic vulnerability in the Gulf: desalination plants. Water security is rapidly becoming a core national security issue.

For decades, oil has defined the geopolitics of the Persian Gulf. Yet the recent conflict involving Iran, Israel, and the United States has exposed another critical vulnerability that could shape future wars: water infrastructure.

The Gulf Cooperation Council (GCC) states are among the most water-scarce countries in the world. With virtually no permanent rivers and minimal rainfall, countries such as Saudi Arabia, the United Arab Emirates, Kuwait, Bahrain, and Qatar rely overwhelmingly on desalination plants to supply drinking water to nearly 100 million people.

During the latest regional conflict, that dependence was transformed from an environmental challenge into a national security threat.

Desalination Plants Have Become Strategic Targets

The recent war demonstrated that desalination facilities are no longer simply civilian infrastructure—they are strategic assets.

Iranian missile and drone attacks reportedly threatened or damaged desalination infrastructure in Bahrain, Kuwait, and areas close to the UAE's largest desalination complexes. At the same time, U.S. and Israeli strikes also affected water infrastructure inside Iran.

Although the scale of the damage varied, one message became unmistakably clear:

Whoever controls water may increasingly control the resilience of Gulf societies during wartime.

Unlike oil facilities, which primarily affect government revenues and global markets, attacks on desalination plants immediately threaten civilian populations by disrupting access to safe drinking water, healthcare, electricity generation, and food production.

The Gulf's Hidden Strategic Vulnerability

Oil pipelines can often be rerouted.

Water cannot.

Most GCC countries obtain between 80 and 90 percent of their drinking water through desalination. Smaller states such as Bahrain, Kuwait, and Qatar possess limited natural freshwater reserves, making them particularly vulnerable to prolonged attacks on water infrastructure.

A successful strike against a major desalination complex could rapidly trigger:

  • Drinking water shortages.

  • Public health emergencies.

  • Industrial shutdowns.

  • Agricultural disruption.

  • Economic losses.

  • Political instability.

In future conflicts, disrupting water supplies could become as strategically valuable as attacking oil exports.

Iran Faces Its Own Water Crisis

While Gulf monarchies depend heavily on desalination, Iran confronts a different—but equally serious—water challenge.

Years of drought, groundwater depletion, poor water management, and climate change have pushed many parts of the country into chronic water stress.

Repeated protests across Iran have already demonstrated that water scarcity is no longer merely an environmental issue but a political one.

Additional attacks on Iran's water infrastructure could intensify existing economic pressures, worsen energy shortages, and fuel further domestic unrest.

Climate Change Is Multiplying Security Risks

Climate change is accelerating the problem.

Rising temperatures increase freshwater demand while simultaneously making desalination more energy-intensive and expensive.

Higher seawater temperatures and salinity also reduce operational efficiency for many desalination systems.

This creates a dangerous cycle where energy security, food security, and water security become increasingly interconnected.

A future regional war would therefore affect far more than military targets—it could simultaneously disrupt electricity, agriculture, public health, and economic activity.

The Rise of Water Security as Military Strategy

One of the conflict's most important lessons is that governments are beginning to treat water infrastructure as military infrastructure.

Future investments are likely to include:

  • Dedicated air-defense systems protecting desalination plants.

  • Underground freshwater storage facilities.

  • Mobile emergency desalination units.

  • Expanded strategic water reserves.

  • Renewable-powered desalination technologies.

  • Artificial intelligence for infrastructure monitoring.

  • Stronger cyber defenses for water networks.

Protecting desalination plants may soon become as important as protecting oil terminals or military bases.

Can the GCC Build Collective Water Security?

Despite facing common vulnerabilities, Gulf states still lack a comprehensive regional strategy for protecting shared water security.

Greater cooperation could include:

  • Joint emergency water reserves.

  • Shared desalination backup capacity.

  • Integrated missile defense for critical infrastructure.

  • Coordinated investment in renewable-powered desalination.

  • Regional conservation and water reuse programs.

Political rivalries, however, continue to limit such cooperation.

Without greater coordination, each state remains individually exposed to future disruptions.

The Future Wars May Be About Survival

For decades, analysts described the Middle East primarily through the lens of oil politics.

That framework is becoming incomplete.

As climate pressures intensify and regional conflicts continue, access to water may become one of the defining strategic questions of the twenty-first century.

The Gulf's desalination plants are no longer just engineering projects—they are national lifelines.

Future wars may therefore be decided not only by who controls the skies or the sea, but by who can keep the water flowing.

Related Reading:

 #WaterSecurity #Gulf #Iran #ClimateSecurity #Geopolitics #MiddleEast #Energy #NationalSecurity

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