Business Daily How are Gulf businesses responding to the Israel-Iran conflict?
Jun 26, 2025
In Dubai, businesses grapple with the uncertainty caused by the Israel-Iran conflict. The significance of the Strait of Hormuz for oil shipping is underscored, prompting discussions on alternative routes like pipelines. Experts emphasize the resilience of Gulf logistics amidst these geopolitical tensions. With a focus on diplomatic efforts, the dialogue highlights the importance of maintaining trade relationships while safeguarding regional stability. The potential economic repercussions on oil prices and freight rates reveal the fragility of Gulf economies in times of conflict.
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Iran's Strategic Strait Calculus
- Iran closing the Strait of Hormuz is unlikely as it would cut its own crucial oil revenues.
- Iran prefers to use threats and smaller actions to exert pressure without provoking massive retaliation.
Real-Time Data Calms Oil Market
- Modern real-time tanker tracking reduced oil price spikes despite geopolitical risks.
- The oil market is adopting a "prove-it" approach to conflict-related supply risks.
Shipping Industry Navigates Conflict
- Shipping companies faced vessel delays and spot prices rose by 20-25% after the conflict started.
- Alternative routes and ports were explored to mitigate the Strait of Hormuz threat.