UAE Shuts ADX and DFM After Iran Strikes Disrupt Strait of Hormuz Oil Flows

The United Arab Emirates temporarily closed its two main stock exchanges, the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM), on March 2–3 after Iran launched strikes targeting major ports and oil tankers across the Middle East. The UAE’s Capital Markets Authority said the suspension was a precautionary move to prevent panic selling and maintain financial stability. Officials clarified the shutdown was not a public holiday but a risk-control measure amid rising geopolitical tensions.

The ADX and DFM serve as the UAE’s primary capital market hubs and are critical to Gulf region equities trading. The closures came as Iran’s attacks effectively blocked the Strait of Hormuz, a strategic chokepoint that handles roughly 20 million barrels of oil per day and nearly 20% of global liquefied natural gas (LNG) exports. Any prolonged disruption in the Strait of Hormuz could send oil prices above $100 per barrel, according to market analysts, potentially driving US inflation toward 5% and reigniting global energy market volatility.

War-risk insurance premiums for ships operating in the region have reportedly surged by around 50%, adding substantial costs per voyage and slowing global trade flows. Many vessels are now rerouting around Africa, increasing delivery times by 10 to 14 days and putting pressure on just-in-time supply chains. Qatar, one of the world’s largest LNG exporters, faces potential export delays as shipping routes remain uncertain.

Gold prices have climbed 13% and oil has risen 20% in the six weeks leading up to the strikes, signaling that markets were already pricing in geopolitical risk. Analysts warn that a sustained LNG disruption could mirror the 2022 European energy crisis, when governments relied heavily on emergency reserves. Prolonged conflict also creates political pressure globally, as higher oil prices conflict with efforts to control inflation and keep fuel costs low.