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<\/div>\nThe U.S.-Israeli war with Iran is rattling businesses worldwide, driving up energy prices, squeezing supplies of critical raw materials and raising questions about the reliability of trade routes critical to the flow of goods from food to car parts.<\/p>\n
Below are the main disruptions so far:<\/p>\n
Travel Chaos<\/strong><\/p>\n The war has closed much of the region\u2019s airspace and crippled Dubai and Doha airports, two of the world\u2019s busiest transit hubs, stranded tens of thousands of passengers and forced airlines to cancel about 40,000 flights\u2013the travel industry\u2019s biggest disruption since the COVID-19 pandemic.<\/p>\n Read more: <\/strong>Travelers Stranded by War Learn Insurance Won\u2019t Cover Flight Cancellations<\/a><\/p>\n Governments are scrambling to repatriate citizens, and airports are gradually resuming operations, but at only a fraction of normal capacity.<\/p>\n Private jets have emerged as an alternative for marooned travelers to get out of the Gulf whilst others have embarked on long taxi drives across the desert to Riyadh, Saudi Arabia, in the hope of flying home from there.<\/p>\n Shipments ranging from fresh produce to airplane parts are in limbo as Middle East conflict squeezes cargo capacity and pushes up freight rates. (Related<\/strong>: Perishables to Plane Parts Stranded as Middle East Conflict Hits Air Cargo<\/a> )<\/p>\n Airlines<\/strong><\/p>\n The shutdown of Gulf airspace rippled quickly across airline networks and battered the industry\u2019s shares<\/a>.<\/p>\n Prices of flights between Asia and Europe have soared, some airlines including Wizz Air and Lufthansa have changed routes, and Ryanair has seen a jump in demand for short-haul flights as Europeans stay closer to home for Easter.<\/p>\n Some prices of jet fuel, the second-largest expense for carriers after labor, have doubled since the start of the conflict, adding pressure on carriers.<\/p>\n U.S. airlines, which abandoned the practice of hedging against fuel costs, could be the hardest hit if the war is prolonged. European and Asian airlines maintain active fuel hedging strategies.<\/p>\n For pilots, the Iran war is making the skies even more perilous, ratcheting up pressure on those flying through them due to events from drone incursions to flight paths squeezed by conflict.<\/p>\n Impact on Dubai<\/strong><\/p>\n The conflict has put at risk the Middle East\u2019s carefully constructed image<\/a> as a safe and high-end vacation hot spot after billions of investment in recent years from Abu Dhabi to Dubai. Tourism is worth some $367 billion annually to the region.<\/p>\n It has also laid bare how heavily global air travel relies on a handful of hubs led by Dubai, the world\u2019s busiest international airport.<\/p>\n In Dubai and other major Middle Eastern shopping hubs, many stores were closed or operating with a skeleton staff last week.<\/p>\n Defense Industry<\/strong><\/p>\n The United States has unleashed an array of weaponry against Iranian targets, including Tomahawk cruise missiles, stealth fighters, and for the first time in combat, low-cost one-way attack drones modeled after Iranian designs.<\/p>\n The Pentagon also used artificial intelligence services from Anthropic, including its Claude tools, during its attack.<\/p>\n Last week, the Pentagon designated the AI lab a \u201csupply-chain risk,\u201d barring government contractors from using its technology in work for the U.S. military. That followed a months-long dispute over the company\u2019s insistence on safeguards that the Defense Department says went too far.<\/p>\n U.S. President Donald Trump met executives from seven defense contractors on March 6, as the Pentagon works to replenish supplies drawn down by U.S. strikes on Iran and other recent military operations.<\/p>\n Critical Metals and Raw Materials<\/strong><\/p>\n Qatari smelter Qatalum began shutting down operations last week, while Aluminium Bahrain said it had halted shipments and declared force majeure because it could not move metal through the Strait of Hormuz. The Gulf region accounts for about 8% of global aluminum supply.<\/p>\n Aluminum prices on the London Metal Exchange jumped sharply on the news, while physical premiums in Europe and the United States climbed to multi\u2011year highs.<\/p>\n Nickel makers in Indonesia reliant on the Middle East for 75% of the sulfur they use may have to cut production as Gulf shipping is increasingly disrupted by the conflict.<\/p>\n Read more: <\/strong>World\u2019s Farmers See Fertilizer Price Surge as Iran War Blocks Exports<\/a><\/p>\n Fast Fashion and Luxury<\/strong><\/p>\n Shipments of garments for Zara owner Inditex and other major clothing retailers have been stranded at airports in Bangladesh and India as the conflict curbs air cargo flights.<\/p>\n South Asia is a clothes manufacturing powerhouse and fast fashion brands around the world rely on factories in Bangladesh, India and Pakistan for a constant stream of new T-shirts, dresses and jeans.<\/p>\n The crisis is also adding pressure on the luxury sector, already struggling to emerge from a slowdown in demand, with groups such as Richemont and Zegna seen among the most exposed.<\/p>\n Chips and Data Centers<\/strong><\/p>\n South Korean officials have warned that a prolonged conflict could disrupt supplies of key semiconductor manufacturing materials sourced from the Middle East, including helium, which is essential for chip production and has no viable substitute.<\/p>\n Drone strikes that damaged some of Amazon\u2019s data centers<\/a> in the United Arab Emirates and Bahrain raised questions about technology supply chains and Big Tech\u2019s pace of expansion in the region.<\/p>\n (Reporting by Reuters bureaus; compiled by Josephine Mason; editing by Bernadette Baum)<\/p>\n Photograph: A plume of smoke rises near Erbil International Airport in Iraq on March 1, 2026; photo credit: Shvan Harki\/AFP\/Getty Images<\/em><\/p>\n Related:<\/strong><\/p>\n<\/p><\/div>\n Topics<\/span> USA<\/a> <\/p>\n<\/p><\/div>\n Was this article valuable?<\/p>\n<\/p><\/div>\n