DUBAI,— Gulf states including the United Arab Emirates and Saudi Arabia are considering a Ukrainian designed interceptor drone priced at about $2,500 as a lower cost option to respond to Iranian attacks that are reducing supplies of United States made missiles, a Japanese company promoting the system abroad told Reuters.

Since the start of the U.S. Israeli war with Iran, Tehran has launched waves of low cost mass produced drones, including Shahed models similar to those used by Russia in Ukraine.

Gulf countries and U.S. forces have mainly used expensive interceptor missiles to destroy them, highlighting a broader change in air warfare where cheaper systems used in large numbers can gradually drain stocks of advanced air defense missiles.

Everyone started doing the math and it does not make economic sense, people are now realizing that, said Toru Tokushige, chief executive of Terra Drone, adding that inquiries from the Middle East have increased since the conflict began.

The interceptor drone costs about 400,000 yen, or $2,526, each, compared with Patriot interceptor missiles launched from the ground that can cost around $4 million, while a Shahed drone may cost about $20,000.

In the first week of the conflict, Iran launched more than 1,000 drones and is believed to have the ability to produce roughly 10,000 every month.

The embassies of Saudi Arabia and the United Arab Emirates in Tokyo did not immediately reply to requests for comment.

Terra Drone, known for commercial drone services, said last month it was entering military sales through a partnership with Ukrainian startup Amazing Drones and developed the Terra A1 interceptor to counter Shahed attacks launched by Moscow against Ukraine.

Under the deal, the Japanese company will market the system overseas and provide investment and production expertise.

The Terra A1 has not been tested in combat and is expected to be delivered to Ukraine military forces in coming months for trials, Tokushige said.

He added that Terra Drone already supplies survey and inspection drones to Saudi state oil company Aramco and may use its position in the kingdom to support interceptor drone production in the region.

(With files from Reuters)

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