HSBC reaffirms confidence in GCC as Iran-US conflict rattles markets

Dubai: HSBC remains confident in the long-term prospects of Gulf economies despite escalating conflict across the Middle East, Group Chief Executive Georges Elhedery said in a statement to Gulf News on Monday.

“Our thoughts are with all those affected by current events,” Elhedery said. “HSBC remains steadfast in our confidence in the GCC and in the long-term strength, resilience and promise of the region.”

He added that the bank’s view of the region’s economic fundamentals “is unchanged,” describing the Gulf as a region that has repeatedly endured disruption and emerged stronger.

“HSBC has been deeply committed to the region for more than 130 years,” Elhedery said. “We remain invested in its future and in the opportunities that lie ahead for its people, businesses, and economies. We are fully engaged in supporting our colleagues, customers and partners across the region.”

Elhedery’s comments come as tensions in the Middle East intensify following more than a week of U.S. and Israeli bombardment of Iran and retaliatory attacks across the region.

Iran launched additional strikes against Israel and Gulf countries. Officials say the conflict has killed at least 1,230 people in Iran, 397 in Lebanon, and 11 in Israel. The U.S. military also said a seventh American service member died from injuries sustained during an Iranian attack on troops stationed in Saudi Arabia.

Financial markets reacted sharply to the escalation. Oil and gas markets also reacted sharply to the escalating conflict. Natural gas prices surged after Qatar temporarily halted liquefied natural gas production earlier in the fighting, disrupting shipments from the world’s largest LNG exporter.

Rising energy costs also triggered a broad sell-off in global equities. Major markets across Europe and Asia fell, while U.S. stocks also declined as investors assessed the economic impact of higher fuel prices.

HSBC has been expanding its presence across the Middle East as part of a broader strategy focusing on Asia and the Gulf.

The bank has operated in the region for more than a century and maintains major operations across the Gulf Cooperation Council countries, including the UAE and Saudi Arabia.

Dubai serves as a key regional hub for HSBC’s corporate banking, trade finance and wealth management operations.

The lender has also increased investment in regional wealth services, recently opening its first Middle East wealth centre in the UAE as part of a broader push to capture rising demand for international banking services in the Gulf.

HSBC leadership has repeatedly described the Middle East as a core pillar of its long-term strategy, citing expanding trade flows between Asia and the Gulf, growing sovereign wealth funds and economic diversification across GCC economies.