Source: Fortune
Summary
Iran’s retaliation to the U.S.-Israel bombing campaign has targeted its neighbors in the Persian Gulf, threatening their status as financial and tourist hubs. The region’s success in attracting capital and diversifying away from oil could make it a threat to global markets. Iran’s strategy is to inflict pain on America’s Mideast allies, including the United Arab Emirates, hoping they will pressure President Donald Trump to end combat operations.
Our Reading
The announcement sounds familiar.
Dubai’s luxury hotspots are literally on fire as Iran continues to lob missiles and drones at them. The Jebel Ali port, a key piece of Dubai’s economy, has suspended operations after a berth caught fire. Hundreds of ships near the Strait of Hormuz have frozen in place. Airspace has shut down around the Gulf, affecting the regional economy. Marko Kolanovic, former chief strategist at JPMorgan, warns that the situation could be catastrophic and send shockwaves globally. Dubai’s future depends on how many expats will flee and whether they will eventually come back.
The numbers tell one story: 36% of Dubai’s GDP is at risk, and 88% of expats are exposed to the crisis.
Author: Evan Null
