Kuwait, Qatar, Bahrain, Saudi Arabia, the United Arab Emirates, Oman (exclave of Musandam), Iraq, and Iran all border the Persian Gulf.
There are two questions here:Question 1) Which middle eastern country that lies between Iraq and Afghanistan used to be called Persia? -- The Middle Eastern country between Iraq and Afghanistan is IRAN.Question 2) Why is the Persian Gulf important to this country's economy? -- The Persian Gulf is very important to Iran for a number of reasons. The primary reason is that it provides a mechanism for Iran to export its petroleum around the world. It also provides Iran access to an incredible amount of seafood, trade, and cultural interaction with its neighbors.
The smallest middle east country by size is Bahrain, 650 square miles.
You probably mean Bahrain, which is an independent island-country in the Persian Gulf, and Cyprus, which is an independent island-country in the Mediterranean. There are other insignificant islands around the Middle East.
The Persian Empire and the Greek city-state around the eastern Mediterranean littoral.
Amphibious battles around the eastern Mediterranean Sea.
The persian gulf
around the Persian Gulf
The Greek city-states around the eastern Mediterranean.
Around the Aegean Sea area of western Asia and eastern Europe
Nations around the Persian Gulf are the big producers of oil in the Middle East.
Cyprus, population: 801,851 (as of 1 Jan 2010) Djibouti is also sometimes considered as part of the Middle East and has a population that is close to that size: 879,000 (as of 2010)
In the countries around the Aegean Sea and in the eastern Mediterranean Sea.