Iran's retaliatory strikes across the Gulf have triggered the most widespread business disruption in the region since the pandemic, forcing airport closures, halting port operations and sending shockwaves through financial markets, reported Reuters.
The attacks, launched in response to a joint US-Israeli assault on Iran, landed across every major state in the Gulf, a region that has spent decades building its reputation as one of the world's most reliable business hubs, stated the report. Three people were killed by the attacks in the UAE and loud bangs were heard for a second day in Dubai and Abu Dhabi on Sunday.
The strikes marked an unprecedented escalation for Dubai, a city whose modern identity was built on being insulated from the region's conflicts.
"Regionally, the impact across (Gulf) economies is mixed," said Vijay Valecha, chief investment officer at Century Financial.
"Elevated oil prices provide a fiscal cushion for producers such as Saudi Arabia and Qatar, strengthening revenues and liquidity. However, trade, logistics and tourism, particularly in the UAE, would face pressure if shipping risks rise or regional sentiment weakens," he stated.
Gulf stock markets fell sharply when trading opened on Sunday, with Saudi Arabia's benchmark index dropping more than 4% at the open and closing down 2.2%. Oman closed down 1.4% and Egypt lost 2.5%, both paring earlier losses. Kuwait's exchange took the unusual step of suspending trading until further notice. UAE markets, shut on Sundays, are due to open tomorrow.
It targeted airports, military installations, ports and hotels across the Gulf. Dubai International Airport and Abu Dhabi's Zayed International Airport both sustained damage, with one civilian killed and 11 injured across the two sites. A berth at Dubai's Jebel Ali Port also caught fire following an aerial interception, said the Reuters report.
The disruption has landed at a particularly sensitive moment in the Gulf's business calendar. The attacks fell during Ramadan, when corporate iftars and suhoors - the communal meals that break and begin the daily fast - are among the region's most important networking events.
For a region where relationships underpin business dealings, the loss of Ramadan's networking season adds a less visible but significant cost to the disruption already unfolding.
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