Bursa opens lower amid Wall Street weakness

The United Arab Emirates (UAE) continues to experience a high level of security concern due to the ongoing conflict between the United States and Iran. While the country's airports remain open and major flights are operating, the region's security environment remains challenging. The immediate risks for UAE residents include flight changes, increased fuel and transport costs, shipping-related price pressures, and the possibility of further escalation around the Strait of Hormuz.

The conflict has expanded beyond the Strait of Hormuz, with Iran and its allies applying pressure around both ends of the Arabian Peninsula. Saudi Arabia has been facing heavy Houthi missile and drone attacks. Brent crude prices have risen above $108 per barrel, and the number of vessels transiting Hormuz has declined significantly compared to a 10-day average.

Former Iranian presidents have called for a dignified end to the war, signaling growing debate within Iran regarding the public support for the ongoing confrontation with the US. Iran's Supreme Leader retains ultimate authority over national-security decisions, but the remarks indicate a potential shift in public opinion.

The maritime threat remains significant, with four unidentified projectiles striking two vessels near Khasab, Oman, on Thursday. The location is significant due to its proximity to the Strait of Hormuz. Additionally, US officials believe that hundreds of Iranian Revolutionary Guard Corps (IRGC) officers are currently in Yemen, working alongside the Houthis to potentially shut the Bab el-Mandeb Strait.

Recent reports suggest that Iranian strikes have damaged US military aircraft at a base in Jordan, indicating that the conflict extends beyond the Gulf. The reported attack involves multiple US aircraft, raising concerns about further US retaliation and the potential targeting of Gulf states. The situation highlights the increasing risk of further US retaliation and the heightened concern among Gulf states regarding the possibility of becoming entangled in the conflict.