The U.S. homeland is out of range of military strikes, but state and local governments could see cyber attacks, cloud service disruptions and rising supply costs.
In Brief:
- In the wake of the U.S.-Israeli strikes on Iran, pro-Iranian hacktivists launched attacks. While most hacks focused on the Middle East, a Pennsylvania township was reportedly hit.
- Iranian drones struck several Amazon Web Services data centers in retaliation as well. Many tech companies have significant operations in the Middle East. The war could disrupt cloud services used by state and local governments.
- Iran blockaded a major oil transportation pathway, which may lead to spikes in the costs of goods and transportation. For state and local governments, that could mean projects delayed or coming in over budget.
governing.com
by Jule Pattison-Gordon
March 6, 2026