Regulators in the United Arab Emirates temporarily suspended activity on the nation’s two main stock exchanges, the Abu Dhabi Securities Exchange and the Dubai Financial Market, for March 2 and 3, following Iranian attacks on ports and oil tankers across the region.
The suspension was ordered by the UAE Capital Markets Authority, which oversees both exchanges that together anchor the Gulf’s equity markets.
Why this matters
Iran’s actions effectively disrupted traffic through the Strait of Hormuz. This critical shipping route carries about 20 million barrels of oil per day and roughly one-fifth of global LNG exports.
Market analysts warn that a prolonged shutdown could drive crude prices beyond $100 per barrel, pushing U.S. inflation significantly higher. At the same time, war-risk insurance premiums for commercial vessels have reportedly surged by around 50%, sharply increasing shipping costs and dampening global trade volumes.
To avoid the Hormuz route, some vessels are diverting around Africa, extending delivery times by 10–14 days and placing added strain on just-in-time manufacturing supply chains.
What’s happening on the ground
Authorities said the market closure was a precautionary measure to prevent disorderly selling, emphasizing that it does not constitute a public holiday.
The trading halt followed Iranian strikes on regional port infrastructure. Elsewhere, Israel extended its nationwide state of emergency through March 12, 2026. Qatar, one of the world’s largest LNG exporters, also faces potential export delays as shipping through Hormuz remains constrained.
The broader context
In the weeks leading up to the escalation, gold prices climbed roughly 13%, and oil gained about 20%, indicating that investors had already begun pricing in geopolitical risk.
Some analysts draw parallels between a potential LNG shortfall and the 2022 European energy crisis, when governments were forced to tap emergency reserves. Meanwhile, the stated economic priorities of Donald Trump, including low inflation and inexpensive fuel, stand in tension with a drawn-out conflict involving Iran, increasing pressure for a rapid diplomatic or military resolution.
