Market Snapshot The ongoing conflict involving Iran, the United States and Israel is causing severe disruption to maritime traffic through the Strait of Hormuz , one of the most critical shipping routes for global energy supply. In recent days, tanker movements through the strait have nearly stopped , as Iranian forces warned commercial vessels that ships could face missile or drone attacks . The dramatic drop in shipping activity has already triggered sharp increases in oil and gas prices , raising concerns about the risk...
Global banks are scaling back operations in the Gulf as the Iran conflict deepens, with Citibank temporarily closing most of its UAE branches and evacuating staff from key financial districts.
Citi Closes UAE Branches Until March 14
Citibank will shut most of its branches and financial centres across the United Arab Emirates through March 14 as a precautionary measure.
Mall of the Emirates branch remains open
Reopening planned for March 16
Citiphone services operating at limited capacity
Cheque processing expected to face delays
Earlier this week, Citi instructed staff to evacuate offices in:
Dubai International Financial Centre
Oud Metha district
Employees were told to work from home until further notice.
Key Point: Major US banks are taking precautionary steps as regional security risks escalate.
HSBC Also Suspends Qatar Operations
HSBC has closed all branches in Qatar until further notice, citing staff and customer safety concerns.
The measures come after Iran threatened Gulf banking interests linked to the US and Israel.
Conflict Impact Spreads Beyond Energy
The US-Israeli war with Iran — now nearly two weeks old — has:
Disrupted oil markets
Hit shipping routes
Raised security risks for financial institutions
Increased concerns over capital outflows
Dubai has long positioned itself as the region’s most stable financial hub. However, the latest evacuations risk undermining that reputation.
Key Point: The war is now directly affecting financial infrastructure, not just energy markets.
Broader Implications
Banks’ actions signal:
Heightened security risks in the Gulf
Potential disruption to regional financial services
Rising operational and compliance challenges
If tensions persist, financial hubs like Dubai and Doha may face:
Slower business activity
Relocation of multinational firms
Pressure on investment flows
Bottom Line: The Middle East conflict is now spilling into the banking sector, with global lenders closing branches and evacuating staff — a sign that geopolitical risk is moving beyond markets into core financial operations.
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