Amazon (AMZN) Flags AWS Outage in Bahrain — How Customers and Investors Are Affected

E-commerce giant Amazon AMZN +2.32% ▲ announced that its cloud computing unit, Amazon Web Services (AWS) faced a disruption in its Bahrain region due to drone activity linked to the ongoing Middle East conflict. Amazon added that it is redirecting customers to other AWS regions while it works to resolve the issue. However, it did not share when services will be fully restored.

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For context, after weeks of conflict, President Trump yesterday announced a five-day delay in planned strikes on Iran’s energy infrastructure, easing immediate fears of a major supply disruption.

What the AWS Outage Means for Amazon Customers

The disruption in AWS’s Bahrain region could temporarily slow services for some customers in the Middle East. AWS also stated that the attacks caused power outages, structural damage, and even water shortages due to fire-control measures. As a result, several cloud services were disrupted, and full recovery could take longer than initially expected.

This is the second time AWS’s Bahrain region has been hit by drones since the U.S.-Israeli conflict with Iran began. Earlier this month, AWS said its facilities in Bahrain and the United Arab Emirates were affected by power outages and that it was working to restore services.

Interestingly, global tech companies like Amazon are investing heavily in the UAE for AI and cloud computing, making the region more important than ever.

What Amazon Investors Need to Know

AWS powers many popular websites and government operations and is also the company’s main profit driver. In Q4 2025, AWS generated $35.6 billion in revenue, growing 24% year-over-year — its fastest growth in 13 quarters.

But this is a regional issue, and it’s unlikely to affect Amazon’s global cloud business or long-term growth. However, investors should expect some short-term pressure on AWS revenue in the Middle East. Overall, the company’s quick move to shift customers to other regions should help limit losses, keeping Amazon’s overall profit outlook largely intact.

Here’s a look at AWS’s performance over the past few quarters, showing how the business has grown.

What Is the Price Target for AMZN Stock?

According to TipRanks, AMZN stock has a Strong Buy consensus rating based on 40 Buys and three Holds assigned in the last three months. At $280.0, the Amazon average share price target implies an upside of 33.24% from the current level.

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