Iran: Economy

Domestic

Military strikes by the US and Israel on Iran have caused a sharp rise in oil and gold prices and a drop in global stock markets. Oil prices topped $90 per barrel, and gold passed $5,200 per ounce. The US dollar gained value as investors sought safe assets. European Central Bank officials warned that a lengthy conflict could cause a spike in inflation, testing the stability of Gulf financial hubs.

Air travel and shipping in the Persian Gulf region have been heavily disrupted. Airlines canceled flights and Maersk suspended bookings, while maritime insurers canceled war risk coverage for ships. Hundreds of ships dropped anchor or were rerouted around the southern coast of Africa to avoid the area. The situation also led to a strike by Greek seafarers over crews stranded in the region. European stock markets experienced a wave of selling, with analysts expecting Germany's DAX index to fall significantly.

International

Explosions were heard in Dubai and flights were disrupted after Iran launched strikes, with missile debris found. The United Arab Emirates is considering freezing billions of dollars in Iranian assets in response, raising questions about Dubai's reputation as a stable place for business. Separately, the US Justice Department is probing how Iran used the cryptocurrency exchange Binance to avoid American sanctions, examining potential sanctions evasion through crypto transactions.