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Iran Israel conflict

Latest news and analysis from AGBI on the conflict between Israel and Iran

Bomb damage in Israel: While Saudi Arabia has invested in mitigating the Strait of Hormuz risk, other Gulf nations like Qatar and Kuwait lack alternative oil export routes, making them vulnerable to disruptions

Gulf economies brace for escalation in Israel-Iran war

Over the weekend, an Iranian general and member of parliament said that the Islamic Republic was “seriously reviewing” the possibility of closing the Strait of Hormuz, thereby threatening to cut an economic lifeline for Gulf oil producers.  Iran has also threatened to strike American bases in Arab countries, should the US enter further into the […]

People shelter in an underground train station in Ramat Gan, Israel, on Tuesday. Gulf markets 'were more concerned about Iran’s response to an Israeli attack than the Israeli attack itself', says one analyst

Markets slip again on 6th day of Iran-Israel airstrikes

Gulf stock markets slipped in early trading on Wednesday, extending declines as the Iran-Israel conflict made investors more risk averse.  Dubai’s index was down 0.8 percent before midday local time, poised for its fifth drop in six sessions since it hit a 17-year high on June 10. However, selling pressure has been relatively muted across […]

Oman's Khasab harbour. Small boats regularly cross the Strait of Hormuz taking goods and livestock to Iran

Iran-Israel conflict cuts off Oman’s strategic town

The conflict between Iran and Israel has cut off supply lines for local traders in Oman’s coastal town of Khasab in the strategic Strait of Hormuz.  Police watch the Khasab seafront, and their patrol boats are stopping vessels from sailing towards Iran.  Located in the Musandam Peninsula in the northern tip of Oman, the town […]

Smoke rises in Tehran as the Israel-Iran air war continues. The conflict entered its sixth day on Wednesday

Oil prices climb as Trump calls on Iran to surrender

Oil prices continued to rise on Wednesday morning as the Iran-Israel air war entered its sixth day and US president Donald Trump called for Iran’s “unconditional surrender”. Brent crude futures rose 0.3 percent to $76.68 per barrel by 03:20 GMT. US West Texas Intermediate crude futures gained 0.4 percent to $75.10 per barrel. The US military […]

The production platform of Israel's Leviathan natural gas field. Supplies from Israel to Jordan have been disrupted

Egypt increases gas supply to Jordan as Israeli supplies falter

Egypt has reportedly increased its supply of natural gas to Jordan following the disruption of Israeli gas flows. Cairo has been supplying Jordan with 100 million cubic feet of natural gas per day to power its plants, Arabic news portal Ashraq Business reported, citing Egyptian and Jordanian officials. The flow of gas has been increased […]

Rescue teams outside a Tehran building that was hit by an Israeli airstrike. The conflict has led to 'very tense' conditions for Gulf shipping operators

Shipping on a knife-edge as missiles pound Iran and Israel

Shipping is continuing to move around the Middle East even as Iran and Israel exchange rocket and drone strikes and despite a collision between two tankers in the Gulf. But operators are expected to charge a premium as their insurance and crew costs increase, according to maritime experts and lawyers. Early on Tuesday, reports emerged […]

There was a mixed performance across Gulf bourses on Tuesday. Saudi Arabia declined because of oil price concerns, while Kuwait's index rose

Investors hold firm despite stock market declines

Gulf stock markets declined on Tuesday as the conflict between Iran and Israel intensified, although investor sentiment appears resilient. Historically, regional geopolitical tensions have sparked sharp sell-offs on Gulf bourses as traders seek to cut their exposure. This time, however, investors seem less easily spooked and daily index declines have been relatively small. “There’s now […]

Iran's ambassador Amir Saeid Iravani speaks at the UN in New York. US president Donald Trump has urged Iranian citizens to evacuate Tehran

Major bourses subdued as Israel-Iran conflict rages

Major stock markets in the Gulf were subdued in early trade on Tuesday with investors cautious as fighting between Iran and Israel entered its fifth day, sparking fears of potential regional instability. Iranian media reported explosions and heavy air defence fire in Tehran. In Israel, air raid sirens sounded in Tel Aviv in response to […]

People wait for their flight at Lebanon's Beirut-Rafic Hariri airport during schedule disruptions stemming from the Iran-Israel conflict

Flight detours and high oil prices raise costs for Gulf airlines

Gulf carriers are confronting escalating operational costs as the Israel-Iran conflict disrupts regional air travel and drives up fuel prices. Airlines across the region have adjusted flight paths, with many suspending services to parts of the Levant and diverting European-bound traffic via the Red Sea, Egypt or northern Saudi Arabia. In some cases the detours […]

Smoke rises following what Iran says was an Israeli attack on Sharan Oil depot in Tehran on June 16, 2025

Iran-Israel conflict may add up to $10 risk premium to oil

The risk premium in oil prices linked to the Iran-Israel conflict is expected to stay within the $5 to $10 range, global ratings agency Fitch has said. However, any disruption to Iran’s production or export infrastructure will add more upward pressure to prices. Brent crude oil prices rose to around $75 per barrel from nearly […]

Oil tankers pass through the Strait of Hormuz. Iran is Opec's third-largest producer

Oil prices rise 2% as Iran-Israel conflict deepens

Oil prices climbed over 2 percent on Tuesday as Iran-Israel tension intensified and US president Donald Trump urged “everyone” to evacuate Tehran, increasing the prospect of deepening unrest in the region and disruption to oil supply. The Brent crude futures contract was up $1.17, or 1.6 percent, at $74.4 a barrel as at 00:05 GMT and US West […]

Smoke rises following what Iran says was an Israeli attack on Sharan Oil depot in Tehran, Iran, June 16, 2025. Majid Asgaripour/WANA (West Asia News Agency) via REUTERS ATTENTION EDITORS - THIS PICTURE WAS PROVIDED BY A THIRD PARTY

Israeli attacks on Iran’s energy assets yet to spook oil markets

Israel’s attacks this weekend on Iranian energy assets serving local consumption will not roil markets because they do not affect export flows and have yet to repel tankers from traversing regional waters, analysts have said. After striking Iranian nuclear and military sites on Friday, Israel hit its South Pars 14 gas processing complex, the nearby […]

Cancelled flights shown at Israel's Ben Gurion International Airport. Carriers are facing major disruption across the region

Gulf airlines suspend routes and reroute flights

Major Gulf carriers continue to implement sweeping route changes and flight suspensions amid escalating tensions between Israel and Iran.   Regional airspace closures are raising operational risks and disrupting travel across the Middle East. Airspace over Iran remains closed, with data from FlightRadar24 showing commercial aircraft rerouting across Saudi Arabia and Egypt to avoid the conflict […]

The aftermath of an Iranian missile attack on Israel. The exchange of strikes between the two countries continues to weigh on investor sentiment, even as UAE markets show initial signs of recovery

UAE stocks shrug off Iran-Israel escalation

UAE stock markets recovered some ground on Monday after a sharp decline late last week, as investors re-bought property, industrial and energy shares despite acute geopolitical tensions in the Middle East. Israel and Iran have exchanged strikes for a fourth consecutive day, targeting infrastructure and causing civilian casualties in what could be the beginnings of […]

Aramco CEO Amin Nasser said that experience had shown that new energy sources do not replace the old, but add to the mix

Oil and gas critical in times of war, says Aramco CEO

The importance of oil and gas cannot be underestimated when conflicts occur, the head of Saudi oil giant Aramco told an energy conference on Monday. Aramco CEO Amin Nasser delivered his speech to the Energy Asia Conference in Kuala Lumpur by a video link. Oil prices jumped last week after Israel launched strikes against Iran on Friday that […]

Oil prices settled 7% higher on Friday, having surged more than 13% during the session to their highest levels since January

Oil prices rise 3% amid export disruption fears

Oil prices jumped in early Asian trade on Monday after Israel and Iran launched fresh attacks on Sunday, heightening fears that the escalating battle could trigger a broader regional conflict and widely disrupt oil exports from the Middle East. Brent crude futures rose $2.37, or 3.2 percent, to $76.60 a barrel by 22:07 GMT, while […]

Airlines are navigating empty skies over much of the Middle East as Israeli attacks on Iranian sites force thousands of flight cancellations and diversions

Middle East airspace shut after Israel strikes Iran

Airlines steered clear of much of the Middle East on Friday after Israeli attacks on Iranian sites forced carriers to cancel or divert thousands of flights in the latest upheaval to travel in the region. Proliferating conflict zones around the world are becoming an increasing burden on airline operations and profitability and more of a safety concern. Detours add to […]

An worker at the Soroush oil field. Iranian oil capacity is the third largest in Opec

Saudi and UAE oil may offset any Iran disruption, analysts say

Saudi Arabia and the UAE can potentially replace lost Iranian oil supply, but heightened military activity in the Persian Gulf will make it difficult to plug any shortages during Iran-Israel tensions, analysts say. Israel attacked Iranian nuclear and military sites on Friday, pushing oil prices to an intra-day high of $78 per barrel – the […]