Bahrain says evacuating Manama neighborhood: AFP

Bahrain says evacuating Manama neighborhood: AFP

Bahrain Authorizes Evacuations in Manama Amid Regional Tensions

The government of Bahrain confirmed that a missile attack targeted the headquarters of the U.S. Navy’s 5th Fleet in Manama, prompting emergency measures and the evacuation of military dependents from the area according to reports. The Department of Defense authorized non-mandatory departures for families stationed at Naval Support Activity Bahrain, a key U.S. military hub in the Persian Gulf, following the escalation of U.S. and Israeli strikes on Iran. The move reflects heightened regional instability as President Donald Trump declared a "major combat operation" against Iran, citing concerns over its nuclear program and regional aggression.

The attack on the 5th Fleet facility underscores the vulnerability of strategic infrastructure in the region. Bahrain, a U.S. ally hosting critical naval operations, has issued emergency alerts for civilians and military personnel, advising shelter-in-place protocols and limiting non-essential activities. The Pentagon’s decision to facilitate family evacuations highlights the potential for prolonged conflict, which could disrupt regional trade and investment flows.

Economic implications are already emerging. A near-total internet blackout in Iran, attributed to government measures, has raised concerns about digital infrastructure resilience and cross-border communication. Additionally, U.S. embassies in Bahrain and neighboring Qatar have advised citizens to avoid public spaces, potentially impacting local economies reliant on expatriate communities and diplomatic activity.

The conflict’s financial fallout extends beyond Bahrain. Iran’s retaliatory missile launches and the U.S.-Israel military operations risk destabilizing oil markets, given the Persian Gulf’s role in global energy exports. Analysts warn that prolonged hostilities could drive up energy prices, strain regional budgets, and divert capital from development projects to defense spending.

As tensions persist, investors are closely monitoring diplomatic developments and military movements. The U.S. and Israel have framed their actions as a preemptive measure against Iran’s nuclear ambitions, while Iran’s leadership has warned of a "regional war". For now, Bahrain’s evacuation orders and the broader geopolitical uncertainty remain central to assessing short-term financial risks in the Gulf.