Yesterday, there was a buzz across the UAE, with schools open and a major manufacturing exhibition underway. Then Iran launched a barrage of missiles and drones, striking an oil facility in Fujairah and raising concerns that the US-Iran ceasefire could collapse. By Tuesday, thin commuter traffic suggested many people had stayed home, while schools pivoted back to remote learning, and the congestion that had built up in recent weeks evaporated.
The fighting began in the contested Strait of Hormuz, where the US military said it repelled Iranian attacks while protecting two American-flagged ships. The UAE also said an empty ADNOC tanker was targeted by Iran. US President Donald Trump is growing impatient with stalled negotiations with Tehran, according to Axios, while some Republican senators are drafting an authorization for the use of military force in case he decides to resume strikes, Semafor reported. At the United Nations Security Council, the US and Gulf countries (excluding Oman) are reportedly planning to submit a resolution to compel Iran to reopen the strait; an earlier attempt was blocked by China and Russia.
At chef Mohamad Orfali’s Three Bros restaurant in Dubai, diners didn’t flinch as their phones screeched with the first missile alerts in weeks, instead tucking into their gambas, burnt leeks pide, and tomato water kombucha. But the renewed fighting quickly shifted industry sentiment: One hospitality group reversed a decision made just days earlier to restore salaries cut in March, according to messages seen by Semafor.