Morning Briefing: March 4, 2026

ISTANBUL

Here’s a rundown of all the news you need to start your Wednesday, including tensions escalating in the Middle East with Saudi Cabinet saying that the kingdom will take all necessary measures to defend its security, Qatar announcing dismantling cells linked to Iran’s IRGC, and US severing trade with Spain in retaliation for base refusal.

TOP STORIES

• Saudi Cabinet says kingdom will take all necessary measures to defend its security

Saudi Arabia’s Cabinet said late Tuesday that the kingdom will take all necessary measures to defend its security and safeguard its territory, citizens and residents as regional tensions deepen amid US-Israeli attacks on Iran and Tehran’s retaliatory strikes.

The Cabinet, which held a virtual session chaired by Crown Prince Mohammed bin Salman, reviewed the latest developments and their impact on regional and international security, according to the Saudi Press Agency (SPA).

It also examined recent diplomatic contacts concerning the crisis, praising statements by leaders of friendly countries condemning what it described as Iranian attacks on Saudi Arabia and other Gulf Cooperation Council states and Jordan.

• Qatar says it dismantled tells cells linked to Iran’s IRGC

Qatar announced that it dismantled two cells linked to Iran’s Islamic Revolutionary Guard Corps (IRGC) that were operating inside the country.

State security units arrested 10 suspects following extensive surveillance operations, according to a report by the state-run Qatar News Agency (QNA).

The report said seven suspects were assigned espionage missions to gather intelligence on “vital and military facilities” in the country, while three others were tasked with carrying out sabotage operations and had received training in the use of unmanned aerial vehicles (UAVs).

Authorities also seized locations and coordinates of sensitive facilities along with communication devices and technological equipment.

• Trump says he will sever trade with Spain in retaliation for base refusal

President Donald Trump said he will cut off all trade with Spain after Barcelona prohibited the US from using bases in on its territory to carry out attacks on Iran.

"We're going to cut off all trade with Spain. We don't want anything to do with Spain," Trump told reporters in the Oval Office as he hosted German Chancellor Friedrich Merz.

The Spanish government said the US has neither used, nor will it use Spanish military bases to conduct attacks against Iran, insisting Madrid maintains full control over its sovereign facilities.

NEWS IN BRIEF

• Turkish President Recep Tayyip Erdogan held a call with Pakistani Prime Minister Shehbaz Sharif about bilateral ties, Iran and regional developments.
• Turkish Foreign Minister Hakan Fidan said Iran’s strategy of bombing all Gulf countries without making any distinction was “an incredibly wrong strategy.”
• US Secretary of State Marco Rubio said "all personnel were accounted" for after a drone struck a parking lot adjacent to the US Consulate in Dubai.
• French President Emmanuel Macron disapproved the US-Israeli attacks on Iran, stressing that they were outside the framework of international law.
• President Donald Trump said he ordered the US International Development Finance Corporation to grant sweeping insurance and unspecified "guarantees" for maritime trade amid an escalating US and Israeli war against Iran.
• A building linked to Iran’s influential Assembly of Experts was targeted in an Israeli strike, according to Iranian and Israeli media reports.
• The Israeli army gave a 24-hour ultimatum to what it described as “representatives of the Iranian regime” in Lebanon to leave the country or face attacks.
• Trump acknowledged the economic toll that the US and Israeli war on Iran is having on oil prices, but promised Americans that they will drop after the conflict ends.
• The US State Department is securing military and charter flights to evacuate Americans from the Middle East, an official said.
• The US Embassy in Beirut said it would be closed "until further notice" due to the ongoing regional tensions
• Two people were killed in an Israeli airstrike that targeted a motorcycle in southern Lebanon, while Hezbollah said it downed an Israeli drone and struck a Merkava tank.
• The United Nations Interim Force in Lebanon (UNIFIL) said it observed Israeli soldiers crossing into border areas of southern Lebanon, calling the move a “violation” of UN Security Council Resolution 1701.
• South Korean Chief of Naval Operations Adm. Kang Dong-gil received a one-month suspension over his alleged involvement in former President Yoon Suk Yeol's failed martial law bid in late 2024.
• Oman said two drones were intercepted in the Dhofar Governorate in the country’s south and a third crashed near Salalah Port.
• OpenAI said it is revising a recently announced agreement to supply artificial intelligence tools to the US Department of Defense after criticism that the deal was rushed and raised concerns over potential domestic surveillance, also causing a flurry of subscription cancellations from ChatGPT users.

BUSINESS & ECONOMY

• QatarEnergy suspends chemical production

After suspending liquefied natural gas (LNG) production on Monday, QatarEnergy decided to stop production associated products.

"QatarEnergy is stopping the production of some downstream products in the State of Qatar, including urea, polymers, methanol, aluminum and other products," the firm announced.

The firm had ceased production of LNG and associated products in facilities in Ras Laffan Industrial City and Mesaieed Industrial City due to "military attacks."

• IMF official flags inflation, growth risks from Middle East war

IMF First Deputy Managing Director Daniel Katz warned that the escalating conflict in the Middle East carries significant risks for the global economy, particularly in terms of inflation and growth, but emphasized that it remains too early to assess the full extent of the impact.

Speaking at the Milken Institute’s Future of Finance event in Washington, Katz said that prior to the recent escalation in the Gulf, the global economy had been expected to continue expanding at a solid pace.

However, the latest developments have introduced new uncertainties, and the ultimate economic consequences will depend largely on the duration and intensity of the conflict.