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Dollar jumps as Middle East war sends oil above $100 a barrel

Analysts have said Asia could bear the brunt of the energy price shock, due to the region’s heavy reliance on oil and gas from the Middle East

Reuters
Reuters

09 March, 2026

Dollar jumps as Middle East war sends oil above $100 a barrel
(Image: Getty)

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Article Summary
Surging oil prices due to Middle East conflict fears drove investors to the dollar as a safe haven. The euro, sterling, and other currencies declined against the dollar. The market rout triggered indiscriminate selling across assets. Asia is particularly vulnerable due to its reliance on Middle Eastern energy, potentially fueling inflation.

The dollar surged on Monday as soaring oil prices sent investors scrambling for cash on worries that a protracted Middle East war could severely disrupt energy supplies and hurt global growth.

Against the surging greenback, the euro and sterling were down roughly 1 per cent in Asia, while the Aussie dollar and even the safe-haven Swiss franc similarly tumbled, as the dollar proved king.

“The US dollar’s finding no shortage of support from traditional haven considerations and obviously, the US’ net energy exporter status in sharp contrast to most of Europe,” said Ray Attrill, head of FX strategy at National Australia Bank.

The broad market rout triggered indiscriminate selling across assets on Monday.

Stocks, bonds and precious metals slid as investors, spooked by the impact of surging oil prices on global inflation and economic growth, turned risk-averse and cashed in on some of their most profitable trades.

“The longer this goes on, the more exponential the damage becomes in a domino effect, which is exactly what oil is now showing to a market that saw some takes last week that things could be a lot worse,” said Michael Every, senior global strategist at Rabobank.

“If we are still in the same position this time next week, things could be quite terrifying.”

The euro last traded 0.9 per cent lower at $1.1517, having slid to a 3-1/2-month low earlier in the session, while sterling slid 1 per cent to $1.3294.

Against the Swiss franc, the dollar was up 0.75 per cent at 0.7817. The Australian and New Zealand dollars slid 0.77 per cent and 0.5 per cent, respectively.

Analysts have said Asia could bear the brunt of the energy price shock, due to the region’s heavy reliance on oil and gas from the Middle East.

The dollar was a whisker away from the 159 yen level in Asia, rising 0.55 per cent to 158.70, and it jumped 1 per cent against the South Korean won to 1,496.40.

“The real question is how high and how long prices stay elevated – because that’s what will ultimately determine the economic fallout,” said Deepali Bhargava, regional head of research for Asia-Pacific at ING.

“A prolonged conflict, coupled with continued currency weakness, would feed more directly into inflation pressures across the region.”

Iran on Monday named Mojtaba Khamenei to succeed his father as Supreme Leader, signaling that hardliners remain firmly in charge in Tehran a week into the war.

The conflict has already led to the suspension of around a fifth of global crude and natural gas supplies, as Tehran targets ships in the vital Strait of Hormuz between its shores and Oman, and attacks energy infrastructure across the region.

Qatar’s energy minister told the Financial Times on Friday he expects all Gulf energy producers to shut down exports within weeks, a move he said could drive oil to $150 a barrel.

High energy prices act like a tax and can also stoke inflation, leaving investors worried that central bankers may be reluctant to cut interest rates.

Surprisingly weak US jobs data on Friday briefly stalled dollar gains and raised expectations for US rate cuts, but that faded somewhat by Monday, with traders now pricing in less than 40 basis points worth of easing by the end of the year.

“Target destroyed”: UAE releases videos of Iranian drones shot from sky

The UAE Ministry of Defence has released footage showing Iranian drones being destroyed mid-air

Gareth van Zyl
Gareth van Zyl

08 March, 2026

“Target destroyed”: UAE releases videos of Iranian drones shot from sky
Image: UAE Ministry of Defence (X)

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Since February 28th, the UAE has intercepted over 90% of incoming missiles and drones, totaling over 1,600 projectiles detected following regional escalation. The Ministry of Defence released footage showcasing successful interceptions of Iranian UAVs, primarily Shahed drones. The UAE utilizes advanced air defense systems like THAAD and Patriot. Authorities emphasize national security is paramount.

More than 90 per cent of missiles and drones fired toward the UAE since February 28 have been intercepted, according to the latest figures released by the country’s Ministry of Defence (MOD).

The update came as the MOD published new video footage showing Iranian drones being destroyed mid-air as the UAE’s air defence systems continue responding to the regional escalation.

In the video, released on the ministry’s official X account, air defence operators can be heard confirming “target destroyed” as incoming unmanned aerial vehicles (UAVs) are successfully intercepted.

“There is no compromise when it comes to the nation’s security and sovereignty,” the ministry said.

“The UAE Armed Forces stand ready to deter any threat.”

Latest interception figures

According to the MOD’s latest update released on Sunday, the UAE has detected more than 1,600 incoming projectiles since the conflict escalated on February 28 following US and Israeli strikes on Iran.

The figures include drones, ballistic missiles and cruise missiles.

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UAVs (drones)

  • 1,422 detected
  • 1,342 intercepted
  • 80 impacts on land

Ballistic missiles

  • 238 detected
  • 221 intercepted
  • 15 fell into the sea
  • 2 impacts on land

Cruise missiles

  • 8 detected
  • 8 intercepted

The data shows that the overwhelming majority of incoming threats have been neutralised before reaching their targets, reflecting the effectiveness of the UAE’s layered air defence network.

The country operates advanced systems including THAAD and Patriot missile defence platforms, which are designed to intercept threats at different altitudes and ranges.

Iran’s Shahed drones

Many of the UAVs used in the attacks are believed to be part of Iran’s Shahed drone family, particularly the Shahed-136, which has been widely deployed by Iran in recent years.

The Shahed-136 is a loitering munition, sometimes referred to as a “kamikaze drone”, meaning it detonates on impact with its target.

Key characteristics include:

  • Speed: approximately 160–185 km/h
  • Range: estimated 1,000km to 2,000km
  • Length: around 3.5 metres
  • Wingspan: about 2.5 metres

The drones are typically launched from truck-mounted racks, allowing multiple units to be fired in quick succession.

They are relatively inexpensive compared with conventional missiles and are often built using commercially available components, including small piston engines, satellite navigation systems and lightweight composite materials such as fibreglass.

Because of their lower cost, they can be deployed in large numbers.

However, their relatively slow speed and predictable flight paths mean they remain vulnerable to interception by modern air defence networks.

Defence systems activated across the Gulf

The drone and missile campaign has targeted several countries across the Gulf since the escalation began at the end of February.

Authorities across the UAE have repeatedly emphasised that defence systems are operating as designed, with interceptions taking place before threats reach populated areas.

Officials have also stressed that national security and public safety remain the top priority as the situation continues to evolve.

UK PM Keir Starmer thanks UAE for ensuring safety of British nationals

Call between UAE President Sheikh Mohamed bin Zayed and UK Prime Minister Keir Starmer highlights cooperation as conflict escalates

Gareth van Zyl
Gareth van Zyl

08 March, 2026

UK PM Keir Starmer thanks UAE for ensuring safety of British nationals
Britain's Prime Minister Keir Starmer shakes hands with UAE President Sheikh Mohamed bin Zayed Al Nahyan during their meeting at the Shati Palace in Abu Dhabi, United Arab Emirates on December 9, 2024. (Getty Images)

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UK PM Starmer thanked UAE President Al Nahyan for ensuring the safety of British nationals amidst regional tensions. Starmer condemned Iranian attacks and reiterated UK solidarity, emphasizing the threat to regional stability. Both leaders stressed de-escalation and preserving Middle East stability, acknowledging the heightened alert status due to recent missile attacks.

The UK has thanked the UAE for ensuring the safety of British nationals living in the country as tensions escalate across the region.

In a phone call on Sunday, UAE President Mohamed bin Zayed Al Nahyan and UK Prime Minister Keir Starmer discussed the ongoing military developments and their implications for regional security.

According to Emirates News Agency (WAM), Starmer expressed appreciation for the attention the UAE leadership has given to British nationals residing in the country during the current crisis.

The UK leader thanked Sheikh Mohamed for the measures taken to ensure their safety during what he described as “exceptional circumstances”.

During the call, Starmer also reiterated the UK’s solidarity with the UAE and condemned what he described as Iranian attacks targeting the UAE and other countries in the region.

He said the attacks represent a violation of national sovereignty and pose a threat to regional stability.

Sheikh Mohamed thanked the UK government for its support, according to WAM.

Both leaders emphasised the need to de-escalate the situation and prevent a widening of the conflict, stressing the importance of preserving stability across the Middle East.

The discussion comes as the Gulf region remains on heightened alert following a wave of missile and drone attacks launched toward several Gulf countries since late February.

Despite the tensions, authorities across the UAE have repeatedly reassured residents and businesses that security systems remain fully operational and that the country’s defence infrastructure continues to intercept incoming threats.

UAE President Sheikh Mohamed says country is well, no easy prey

President Sheikh Mohamed bin Zayed Al Nahyan made the comments while visiting those injured by recent events

UAE President Sheikh Mohamed says country is well, no easy prey
UAE President Sheikh Mohamed bin Zayed Al Nahyan (Getty Images)

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In response to regional instability, UAE President Sheikh Mohamed bin Zayed Al Nahyan affirmed the nation's strength and resolve, stating the UAE is "no easy prey." He pledged to protect all citizens, residents, and visitors, emphasizing the country's preparedness to confront threats and prioritizing national security.

The president of the UAE said the country is well and no easy prey, in his first public comments since regional instability hit the GCC.

“The UAE has a thick skin and bitter flesh – we are no easy prey,” Sheikh Mohamed bin Zayed Al Nahyan said in comments, made on Friday when visiting those injured in strikes, aired on Abu Dhabi TV on Saturday.

“We will carry out our duty towards our country, our people, and our residents who are also part of our family,” he said.

The UAE, which consists of seven emirates including Dubai, would protect everyone in the country, he said.

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Salt Bae weighs in on Middle East crisis, says Dubai restaurant remains open

Celebrity restaurateur Nusret Gökçe, known as Salt Bae, says his Dubai Nusr-Et restaurant remains open and he has travelled to the city to show confidence

Gareth van Zyl
Gareth van Zyl

07 March, 2026

Salt Bae weighs in on Middle East crisis, says Dubai restaurant remains open
Celebrity restaurateur Nusret Gökçe, known as “Salt Bae”, has weighed in on the regional crisis. (Getty Images)

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Salt Bae, Nusret Gökçe, expressed strong support for Dubai and the Gulf region amidst Middle East tensions. He reaffirmed his confidence in Dubai, where his Nusr-Et brand significantly grew. He emphasized that his restaurants remain open and welcoming, signaling that Dubai continues to be a stable and thriving business environment.

Celebrity restaurateur Nusret Gökçe, better known as “Salt Bae”, has voiced support for Dubai and the wider Gulf region as tensions continue to ripple across the Middle East.

In a statement shared with Gulf Business on Saturday, the Turkish entrepreneur said he had travelled to Dubai to stand alongside his team and reaffirm confidence in the city.

“Nusr-Et was born in Türkiye and grew into a global brand in Dubai,” said Gökçe.

“Dubai has always been a place of opportunity, diversity, and resilience for us. This morning, I arrived from New York to stand with our team and to show my confidence in this city and the region.

“Our doors remain open, our fire is on, and we continue to welcome our guests with the same passion and hospitality that define Nusr-Et.”

From butcher to global celebrity

Gökçe rose to global fame in January 2017 after a short video showing his distinctive technique of slicing and seasoning steak — finishing with a theatrical sprinkle of salt — went viral on social media.

The clip quickly turned him into an internet sensation and the nickname “Salt Bae” stuck, propelling his restaurant brand into global pop-culture fame.

Born in Erzurum, Türkiye, Gökçe began his career as a butcher’s apprentice before launching the first Nusr-Et Steakhouse in Istanbul in 2010. The brand expanded rapidly after the viral moment, attracting celebrities, athletes and world leaders.

Global restaurant empire

Today, Nusr-Et operates a network of luxury steakhouses across several major global cities. The group has locations in Dubai, Abu Dhabi, Istanbul, Doha, Riyadh, London, New York, Miami, Dallas, Mykonos and other international destinations.

Dubai has been a key market for the brand’s global growth, with its restaurant in the Four Seasons Resort Dubai at Jumeirah Beach becoming a magnet for tourists, influencers and high-profile visitors.

The chain is known for its theatrical dining style and premium pricing, with some signature gold-plated steak dishes attracting international attention on social media.

Confidence in Dubai

Gökçe’s comments come as businesses across the UAE continue to signal confidence in the country’s stability despite regional tensions.

Hospitality operators in Dubai have emphasised that the city remains open for business, with restaurants, hotels and tourist attractions continuing to operate normally.

For Gökçe, the message was simple: the grills are still on.

“Our doors remain open,” he said.

Staying calm in uncertain times: Here’s what UAE mental health professionals advise

Practical suggestions for families, working parents and leaders across the UAE, from four health professionals

Neesha Salian
Neesha Salian

07 March, 2026

Staying calm in uncertain times: Here’s what UAE mental health professionals advise
Image: Getty Images/ For illustrative purposes

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The regional crisis is causing stress in UAE residents, manifesting as hypervigilance, anxiety, and disrupted sleep. Experts advise recognizing these physical signs, managing news consumption, maintaining routines, and engaging in physical activity. Expats face unique challenges, needing to connect with their community and establish a family readiness plan. Talking to children requires framing information appropriately and reassuring them through routine....

If you’ve spent the past week checking your phone more than usual, felt your stomach drop at a notification, or found yourself anxious about friends and colleagues living in the UAE and elsewhere in the region, you are not alone. Or maybe you’ve been trying to explain something to your children that you don’t fully have words for yourself. For residents across the UAE, moving through life while watching the regional crisis unfold has not been easy. The UAE has done a great job of keeping its residents safe, and life is continuing, but uncertainty still takes a toll. Here, four health professionals share practical advice for getting through it.

Recognising stress

Stress during uncertain times often shows up physically before we recognise it for what it is.

Dr Ash Shishodia, psychiatrist at Thrive Wellbeing Centre, puts it in a way many people will recognise. “Hypervigilance can masquerade as competence,” he says. “For many of us, it may have started as protection. At some point, being alert kept us safe — emotionally, professionally and socially. We learned to anticipate shifts in tone, mood and risk. We became good at scanning for what could go wrong. The problem is that the body doesn’t know when the danger has passed.” His advice: “Managing anxiety isn’t about eliminating it. It’s about noticing when your mind is trying to protect you from something that isn’t actually happening. It’s about gently questioning the story: is this real, or is this old wiring?”

Dr Jane Halsall, chartered counselling psychologist at The Cornerstone Clinic, explains what that looks like in the body. “When people perceive threat or uncertainty, it can trigger the body’s fight-or-flight response, releasing stress hormones such as cortisol and adrenaline. As a result, many people experience hypervigilance, they might jump at the slightest noise, have disrupted sleep, irritability, or a strong urge to repeatedly check news updates. While these reactions are normal, they can become psychologically draining if sustained.”

So, how do you tackle this? Both recommend moving your body, regulating your breath, keeping a routine and setting limits on how much news you consume.

Asra Sarwar, clinical psychologist at Aster Clinic across Discovery Gardens, JLT and Bur Dubai, is straightforward. “During uncertain times, staying calm does not mean ignoring reality, it means responding thoughtfully rather than reacting emotionally. Decide in advance when you will check updates and avoid repeated scrolling, especially before bed. Creating news-free periods at home, such as during meals, helps protect emotional balance.”

The expat experience

Handling stress is hard for everyone right now. But when your family is far away and the news is close, it impacts you in a different way.

“For expats, uncertainty can feel particularly complex. Living abroad often means being physically distant from extended family, familiar institutions that would normally provide psychological grounding. During regional tension, this distance can trigger heightened concerns about safety, belonging and support networks,” says Dr Halsall. She also flags something worth remembering: “Remember, family members may project their own anxiety at these times, so be mindful of boundaries and regularly checking in to reassure them you are ok.”

Dr Ryan Copeland, regional medical director, Middle East at International SOS, keeps it practical. “Expatriates should focus on establishing a clear family readiness plan, keeping essential documents organised, maintaining lines of communication with relatives overseas, and ensuring awareness of employer support services. Community connection, whether through cultural groups, neighbours, or social networks, greatly reduces isolation, a major risk factor during periods of stress.”

Talking to your children

Most parents are wrestling with the same question: ‘What do I say, and how much?’ The consensus among the experts is the same: do not hide it, but do frame it.

“When speaking with children, start by asking what they have already heard. Offer simple, factual explanations appropriate to their age. Younger children need reassurance through routine and presence. Older children and teenagers benefit from open dialogue but should be guided away from excessive exposure to distressing content. Watch for ongoing sleep disruption, withdrawal, physical complaints, or significant behavioural changes,” says Sarwar.

“Children absorb far more than they can articulate,” Dr Copeland adds. “They notice behavioural shifts, tones of voice, and the emotional climate of the household. In times of regional tension, the goal is not to hide information but to frame it appropriately. Parents should also be mindful that children mirror adult coping mechanisms; calm, measured behaviour has a stabilising effect.”

Dr Halsall adds a dimension particularly relevant to parents of teenagers navigating social media. “Children and adolescents are highly sensitive to the emotional climate around them. Even if they do not fully understand the political situation, they often absorb the anxiety of adults and the tone of conversations they hear. Encourage children to share what they know and to express questions or worries openly — this allows parents to provide reassurance and prevent fears from escalating internally. Maintaining routine as much as you can within the context of home schooling is particularly important. Online school, family meals and bedtime rituals all signal stability to a child’s nervous system.”

When you are holding it together for everyone

Leaders and working parents are being asked to stay steady at work and at home at the same time. That is a lot to carry.

Dr Shishodia puts it plainly. “At work, you’re expected to provide clarity. Your team looks to you for confidence, especially when markets are unstable or strategy feels fluid. You are the tone-setter. At home, you are emotional infrastructure. Family members don’t necessarily need solutions, they need steadiness. Presence. Reassurance. Balance becomes a myth. Trade-offs become daily.”

On what actually helps, he is equally direct: “Leadership today isn’t about invulnerability. It’s about regulated presence. And sometimes, strength is simply continuing to show up, thoughtfully, consistently, even when you don’t have every answer.”

Leaders who communicate calmly, transparently and consistently help reduce anxiety within their teams, adds Dr Halsall. “At the same time, it is important that leaders acknowledge their own need for psychological boundaries. Taking time away from constant news updates, maintaining routines with family, and prioritising sleep and recovery are not signs of disengagement, they are essential for sustaining clear thinking and responsible leadership.”

Why routine matters

When everything around you feels uncertain, the small things you can control matter more than you might think. The experts come back to the same point: structure is not just a coping mechanism, it is also what keeps families steady.

“Families benefit greatly from structure. Keeping regular sleep schedules, shared meals, school hours, and daily responsibilities intact creates psychological stability. Predictability reassures the brain that life is still functioning. Building resilience involves shifting attention toward what is within our control. Practical preparedness, reviewing emergency contacts, discussing contingency plans calmly and clarifying family roles, increases confidence without creating panic. Once discussed, avoid repeatedly revisiting worst-case scenarios,” says Sarwar.

She also flags two groups that are easy to overlook. For elderly family members: “Elderly family members may require additional reassurance and reduced exposure to alarming headlines. Involving them in daily decisions and activities preserves a sense of agency.” And for working adults juggling long hours and news cycles: “Working adults should establish clear psychological boundaries, defined work hours, short restorative breaks, and a digital cut-off time in the evening to protect sleep,” she adds.

Ask for help if you need it

The UAE has handled this moment with steadiness and life here is continuing. But stability around you does not automatically mean calm inside you, and that is nothing to be ashamed of.

“Above all, shared connection strengthens resilience. Eating together, light physical activity, prayer, or even simple conversations foster steadiness and emotional security within the home,” says Sarwar.

You are allowed to be unsettled. You are allowed to not have the answers. And you are allowed to ask for help.

UAE resources: Where to find support

Professional support is more accessible than many people realise. Here are two free options:

Abu Dhabi: 800-SAKINA (800-725-462)
The Department of Health Abu Dhabi’s mental health helpline is available in Arabic and English for anyone dealing with stress, anxiety or panic. It’s free, 24/7 and confidential.

UAE-wide: myAster app
Aster DM Healthcare is offering free online mental wellbeing consultations with licensed psychologists, bookable from home through the myAster app during this period.

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