The ongoing Iran-US conflict has disrupted UAE trade, tourism, aviation and logistics, with Dubai International Airport traffic still below pre-war levels and some carriers suspending routes. The UAE suspended commercial and financial ties with Iran after missile threats, hitting re-export volumes that previously made it a major gateway for Iranian imports. Oil exports continue through the Habshan-Fujairah pipeline bypassing Hormuz, helping limit damage compared with more exposed Gulf neighbours. Long-term, the UAE is accelerating investments in alternative ports, pipelines and resilience infrastructure to reduce Hormuz dependence to near zero. While growth is expected to slow in 2026, strong sovereign assets and diversification into non-oil sectors support medium-term recovery.
