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US Embassy in Iraq Attacked; UAE Oil Fields Hit as Conflict Approaches Three-Week Milestone

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The conflict in the Middle East is dragging on throughout March, as the persistant retaliatory strikes escalating in Iraq, Lebanon and the United Arab Emirates (UAE) and campaign of US-led offensives in Iran threaten to spill over into Easter.
US President Donald Trump ramped up his pressure on key allies earlier today, particularly the United Kingdom, to send help to the Middle East to reopen the Strait of Hormuz for oil shipments.
U.S. Embassy is seen across the Tigris River in Baghdad, Tuesday, March 17, 2026. (AP Photo/Hadi Mizban)
The US Embassy is seen across the Tigris River in Baghdad. (AP)

The economic ripples of the ongoing conflict have reached Australian shores, with the Reserve Bank of Australia attributing its decision to increase the cash rate to 4.10 percent, in part, to inflationary pressures stemming from the war.

Meanwhile, former President Donald Trump has intensified his call for allied nations to dispatch ships to secure a vital oil transportation corridor, as tensions in the Middle East drive fuel prices higher.

During a press conference today, Trump expressed his dissatisfaction with the United Kingdom, described France as falling short of expectations, and indicated potential disappointment with several other allies.

Trump revealed he has urged “around seven” countries to deploy naval forces to the Middle East, aiming to protect the Strait of Hormuz. This crucial passage has been effectively blocked by Tehran’s threats following the U.S. and Israeli actions that resulted in the death of Iran’s former supreme leader, Ali Khamenei.

“We’ll provide you with a list,” Trump stated, suggesting some nations were eager to comply, while others were hesitant. He hinted at monitoring which allies would step up to assist in securing the strait.

“We’ll give you a list. Some are very enthusiastic, and some are less than enthusiastic, and I assume some will not do it,” Trump said, implying he was keeping score of when and how allies would come to the party in the strait.

Donald Trump said he could "take" Cuba.
Trump redoubled his push for allies to send ships to secure a critical oil transport route. (AP)

Attacks in Israel, UAE, Iraq and Lebanon

Several pieces of missile shrapnel, some as large as three or four metres in diameter, fell near holy sites across the Old City of Jerusalem overnight, according to police.

Some shrapnel landed near the Church of the Holy Sepulchre, which contains the biblical site at which Jesus Christ was buried.

In Abu Dhabi, firefighters responded to a blaze that started when a drone struck the Shah oil field.

It was the second attack on an oil facility in the UAE, after a fire broke out in the Fujairah Oil Industry Zone on Monday following a drone attack.

Israel also expanded its ground operations in Lebanon to deter Hezbollah attacks against northern Israel.

Israeli strikes in Lebanon against Hezbollah have displaced more than one million people, the Lebanese Disaster Risk Management Unit said.

And a hotel in central Baghdad’s Green Zone was damaged in a drone attack, Iraq’s Ministry of Interior said.

Looper of drone strike in Baghdad
A drone strike lights up the skies Baghdad. (X/@Osinttechnical)

Social media videos show smoke and flames rising from the Al-Rasheed Hotel, which is located in an area housing government offices and diplomatic buildings, including the US Embassy.

“The ministry wishes to clarify that, after specialised forensic teams conducted an on-site and technical inspection, it was found that a drone had struck the upper fence of the hotel, without resulting in any loss of life or significant material damage,” the interior ministry said in a statement.

The Israeli Defense Forces (IDF) later said it had launched a “wide scale wave” of attacks against Iran.

It said the strikes targeted infrastructure in Tehran.

An additional wave of strikes was also launched in Beirut, the IDF said.

An Israeli artillery unit fires towards Southern Lebanon as seen from a position on the Israeli side of the border on March 15, 2026. (Getty)

UAE briefly closes all airspace

The UAE announced the temporary and complete closure of its airspace in an “exceptional precautionary measure” today.

The airspace closure was lifted within a few hours.

Air traffic in the region returned to normal, which included commercial flights out of the region to Australia.

However, the GCAA warned that “continuous real-time monitoring remains in place to ensure the highest levels of safety of air navigation”.

Air traffic in the region returned to normal, which included commercial flights out of the region to Australia. (AP)
Treasurer Jim Chalmers said the escalating conflict in the Middle East has contributed to inflation, which was already headed for troubled waters.
Treasurer Jim Chalmers said the escalating conflict in the Middle East has contributed to inflation, which was already headed for troubled waters. (9News)

Chalmers blames war for inflation biting

Treasurer Jim Chalmers said the escalating conflict in the Middle East has contributed to inflation, which was already headed for troubled waters.

“The impacts of what we’re seeing in that part of the world are already substantial, but we don’t know yet how enduring those very substantial economic pressures will be,” he said.

“It depends very heavily on how long the conflict in the Middle East continues for.”

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