Gulf states caught in the middle of US-Iran conflict

Escalating tensions in the Middle East following regional strikes have triggered significant market volatility, driving investors toward safe-haven assets like gold while causing a sharp decline in emerging market equities. The disruption of oil transit through the Strait of Hormuz threatens to push prices toward $100 per barrel, potentially exacerbating U.S. inflation and complicating the Federal Reserve's interest rate strategy. U.S. economics editor Claire Jones notes that while the U.S. is largely energy self-sufficient, sustained high prices would likely dampen economic growth and impact consumer sentiment ahead of midterm elections. Meanwhile, Gulf states face severe logistical challenges as major travel hubs close airspace, threatening their status as stable financial centers. Additionally, the UK government seeks fiscal stability as Chancellor Rachel Reeves prepares for a low-profile spring statement aimed at avoiding further market turbulence.