Israel-Iran conflict may affect UAE residents

The UAE remains a haven despite the ongoing geopolitical crises in the Middle East. In the ongoing Israel-Iran war, there will be no direct impact on residents.

- Waheed Abbas [e-mail]

However, there could be some indirect impact influence, including higher petrol prices in July, increased costs of gold jewellery, and higher airfare to certain destinations. Prices of consumer goods from countries involved in the conflict and that have closed their airspace could also see a spike in the coming days if the conflict continues.

Oil prices have surged since Israel attacked Iran on Friday morning, pushing prices higher by 14 per cent. The WTI and Brent closed at $72.98 and $74.23 per barrel, up 7.26 and 7.02 per cent, respectively, over the weekend.

Since the UAE deregulated retail petrol prices in 2015, they have been aligned with international ones and are revised monthly. Over the weekend, both warring countries targeted each other's oil storage facilities, and this could push oil prices even higher when markets reopen on Monday. This could also push petrol prices higher for UAE motorists next month.