US-Iran War: Dubai, Abu Dhabi stock markets shut today and tomorrow as Middle East war intensifies

US-Iran War: Stock exchanges in the United Arab Emirates will remain closed for two days — Monday, March 2, and Tuesday, March 3 — as tensions escalate across the Middle East, according to a report by Gulf News. The shutdown applies to both the Abu Dhabi Securities Exchange and the Dubai Financial Market.

The Capital Market Authority confirmed that trading across the country’s exchanges would be suspended on the specified dates. The regulator stated that the decision was taken in line with its regulatory and supervisory mandate and in accordance with applicable laws and regulations. It added that authorities will continue to closely monitor regional developments, assess the situation on an ongoing basis, and take any additional measures if required depending on evolving circumstances. The Authority also urged stakeholders to rely on its official communication channels, along with those of the Abu Dhabi Securities Exchange and the Dubai Financial Market, for further updates.

The move comes as military tensions intensify following escalating confrontations involving Iran, the United States and Israel. The conflict has led to retaliatory strikes and security incidents across several Gulf Cooperation Council (GCC) countries, including the UAE, Bahrain, Kuwait, Qatar and Oman. Concerns are rising that the US-Iran war could broaden further across the region.

Iran launched missile attacks across multiple locations after Iranian Supreme Leader Ayatollah Ali Khamenei and other senior officials were killed in strikes carried out by the US and Israel. Meanwhile, US President Donald Trump warned of strong retaliation after three US service members were killed in an Iranian missile attack.

“America will avenge their deaths and deliver the most punishing blow to the terrorists who have waged war against, basically, civilisation,” Trump said in a video statement posted on Truth Social.

The temporary suspension of trading highlights the seriousness of the regional crisis, as regulators seek to maintain stability during heightened uncertainty. Officials indicated that additional steps may be considered depending on how the situation develops.

Crude oil prices have surged to multi-month highs amid fears of supply disruptions in West Asia. Reports of tanker damage and rising security risks near the Strait of Hormuz have raised concerns about shipment interruptions.

Asian and Indian markets

The impact was also visible across broader markets. In India, both the Sensex and the Nifty declined around 1% each in morning trade on Monday, March 2, as investor sentiment weakened.

“The medium-term impact on the market will depend on how long the conflict lasts. We don’t know the answer to this question. After crippling Iran, the US and Israel may make a strategic withdrawal,” said V K Vijayakumar, Chief Investment Strategist at Geojit Investment.

Across Asia, markets opened lower. Japan’s Nikkei 225 initially dropped more than 2% before trimming losses to trade 1.5% lower at 57,981.54 by midday in Tokyo. Hong Kong’s Hang Seng fell 1.6% to 26,215.91, while the Shanghai Composite was flat at 4,163.01. Taiwan’s benchmark slipped 0.6%, Singapore declined 1.9%, and Thailand’s SET index fell 2.1%.

The coordinated downturn across regional markets underscores the growing uncertainty gripping investors as geopolitical risks intensify.

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