The purpose of the article is to show economic, political, and geopolitical factors that have infl uenced relations between Iran and the countries of the Persian Gulf on the other. It is material that they are examined separately at the level of the Cooperation Council for the Arab States of the Gulf and separately for the individual Arab states that belong to the Council. The article suggests that each state in the Gulf runs its individual policy toward Iran, and a diff erent one as part of cooperation within the Council. In result, the Council itself is weakened and its balancing role in the region is decreasing. Policies of Arab states outside the Council are more critical for the relations with Iran than the policy of the Cooperation Council itself.