Security has kept its status as the most important priority in state foreign policy. However, since there are different understandings of the notion of security among states, it creates conflict of perceptions which leads to 'security dilemma'. The Islamic Republic of Iran as a major power in the Middle East, relying on its experiences of the eight-year-war imposed on it by Saddam Hussein, is enhancing its defense capabilities. This trend has made concerns among Arab states of the Persian Gulf who seek for their security and defense enhancement through huge arms purchases from abroad. The output of this threat perception is seen in their relations and political positions toward Iran. The present article aims to assess the impacts of Iran’s homegrown military achievements on political positions of Middle East countries, in particular the members of the Persian Gulf Cooperation Council.