As the United States intensifies economic sanctions against Iran under President Trump's new strategy, Gulf states grapple with the potential consequences of a deepening conflict. On Monday, U.S. Treasury Secretary Steven Mnuchin unveiled Operation Economic Outcast, a campaign designed to cut off Iran's remaining sources of revenue and penalize those who continue business dealings with Tehran. The latest round of sanctions, described by Mnuchin as the most significant financial offensive ever against Iran, has raised concerns among Gulf nations that have been caught in the crossfire during the ongoing U.S.-Iran tensions. Iran has previously targeted U.S. military assets and infrastructure in neighboring countries, and there is a risk that Tehran may respond to mounting economic pressure by targeting more US assets and energy infrastructure across the region. The strategy could provoke further Iranian retaliation, potentially drawing Gulf nations deeper into the conflict, analysts warn. While the United Arab Emirates (UAE) has moved to cut economic ties with Iran, other Gulf countries such as Saudi Arabia, Qatar, and Oman face difficult strategic calculations. These nations have strong incentives to preserve diplomatic channels with Tehran and to push for a deal that could reopen the Strait of Hormuz, a crucial waterway through which one-fifth of the world's oil and natural gas is shipped. The US measures aimed at isolating Iran are intended to be "economic D-Day," according to Mnuchin, who announced specific sanctions on 60 entities, vessels, and individuals across several countries. However, Iranian political analyst Mostafa Khoshcheschm dismissed the announcement as a "political show" aimed at intimidating Iran's neighbors. The latest measures come after months of war have failed to produce a decisive outcome for the U.S., contrary to President Trump's initial assertions that it would last only weeks. Meanwhile, concerns about dwindling supplies of missiles and air defense interceptors in the Middle East have led Washington to pursue other means of pressuring Tehran. The disruption to energy exports in the Strait of Hormuz has sent gas prices soaring in the U.S., making the war increasingly unpopular at home, despite efforts to establish alternative shipping routes. Despite these challenges, Washington appears to believe that the economic balance is in its favor. Trita Parsi, executive vice president of the US-based Quincy Institute for Responsible Statecraft, stated that the U.S. calculates that rerouting maritime traffic through Oman and a wider shift away from Gulf oil have reduced the effectiveness of Iran's closure of the Strait of Hormuz, while the U.S. blockade has constrained Tehran's ability to sell its oil.