In this study, the spectral characteristics of oil slicks in the Arabian Gulf are investigated with MODIS, MERIS, and Landsat imagery. Two oil spill events were studied based on the multi-sensor technique. The oil slicks indicated both bright and dark contrasts in RGB composites due to the dependence of oil slick appearance in satellite imagery upon the viewing geometry, the solar angle, and oil type and thickness. The spectral Rayleigh-corrected reflectance (R_rc) of oiled areas indicated higher variability due to differences in oil fractions while the R_rc spectra of unoiled areas showed persistency. Floating Algae Index (FAI) images showed potentials in differentiating oil slicks from algal blooms. Ocean circulation and wind data were used for tracking oil slicks and forecasting their potential landfall. Developed oil spill maps indicated good agreement with official records. Combination of satellite observations and hydrodynamic modeling is suggested for establishing an early warning and forecasting system for oil pollution response.