This article reveals how economic and banking sanctions imposed on Iran can reduce Iran’s capacity to protect Persian Gulf environment and how it can lead the region to arms race by increasing the threat perceptions. Moreover, securitization of the Persian Gulf, closing of the Hormuz Strait and outbreak of war are the likely events that would adversely affect environment in the Persian Gulf. Examining the current trend and similar examples, the article will explore the impact of continued hostile attitude towards Iran on Persian Gulf environment. The writing would demonstrate that direct banking and economic sanctions on Iran would generate indirect environmental sanction. The trend would result in a catastrophic future for the Persian Gulf unique oil-rich ecosystem, having immediate repercussions not only for Iran and Persian Gulf coastal states but also for the entire international environment.