US-Iran conflict: What UAE residents should know today (Sept. 17)

Diplomacy offers hope, but Gulf travel, shipping and fuel costs stay exposed

Last updated:
Jay Hilotin, Senior Assistant Editor
Passengers using  “Click and Travel” service at Dubai International Airpot (DXB) to speed up airport checks using biometrics and facial recognition to process passengers in 12-15 seconds. With the regional security situation still fluid,
Passengers using “Click and Travel” service at Dubai International Airpot (DXB) to speed up airport checks using biometrics and facial recognition to process passengers in 12-15 seconds. With the regional security situation still fluid,
Virendra Saklani | Gulf News

The US-Iran war is showing fresh signs of a possible diplomatic opening, though there is still no ceasefire or final agreement.

US President Donald Trump said Thursday that the United States is “hopefully toward the end” of the nearly seven-month conflict and claimed Washington has been in direct contact with Tehran about a possible agreement. 

Meanwhile, the US military says the Strait of Hormuz remains "open", although commercial shipping continues to face major disruption.

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What to watch out for:

For residents, the immediate issues to watch are flight operations, fuel prices, shipping disruptions, regional security alerts.

There's also the possibility of further escalation or a diplomatic breakthrough.

Trump's comments are the clearest recent indication yet that his administration sees a potential diplomatic route out of the conflict.

However, there is no announced ceasefire or final peace agreement.

A diplomatic channel could eventually reduce military and economic pressure across the Gulf, but residents should continue to follow official UAE travel and security guidance until there is a confirmed change in the situation.

Iran-China talks

China is also pursuing its own diplomatic track Iranian Foreign Minister Abbas Araghchi travelled to China on Sept. 16 and held talks with Chinese Foreign Minister Wang Yi.

The timing is significant because Chinese President Xi Jinping is expected to travel to the United States later this month for talks with Trump. China has potential diplomatic relevance on both sides of the conflict.

Strait of Hormuz remains open — but shipping is far from normal

US Central Command (CentCom) said the Strait of Hormuz remains open to shipping. But commercial traffic through the strategic waterway remains heavily disrupted.

The US military says it has redirected 103 commercial vessels as of Sept. 16 as part of its blockade against Iranian maritime trade.

Even if Hormuz remains physically open, restrictions, inspections, rerouting, security concerns and reduced vessel movements can affect:

  • fuel prices;

  • imported goods;

  • shipping costs;

  • industrial production;

  • airline operating costs; and

  • delivery times for some products.

Iran tightens Hormuz rules as Houthis expand Red Sea threat

Iran is requiring vessels seeking to transit the Strait of Hormuz to obtain permission from its maritime authorities, asserting greater control over the critical waterway as US forces escort commercial shipping.

Meanwhile, Iran-aligned Houthi forces have seized Yemen’s Mokha port and strategic islands near the Bab Al Mandab, raising fresh risks for Red Sea shipping.

The UN says commercial traffic remains largely unaffected for now, but the Houthi advance has intensified concerns over a second major energy chokepoint.

Saudi shifts crude exports after pipeline attacks

Saudi Arabia is offering additional crude cargoes to Asian refiners through ship-to-ship transfers off Oman’s Sohar port after drone attacks damaged its East-West pipeline to the Red Sea, according to sources cited by Reuters.

Saudi Aramco is offering Arab Light, Medium and Heavy grades to help offset disruptions at Yanbu. The kingdom has also increased crude loadings from Gulf terminals to about 4 million barrels per day. The measures have eased supply concerns, with Brent falling to about $104.60 a barrel on Thursday.

Tranker Trackers also reported, citing recent satellite images, that greater volumes of crude oil, LNG and LPG are being exchanged via ship-to-ship transfer in the Gulf of Oman.

US is in constant contact with UAE and Saudi Arabia

Massad Boulos, the White House senior adviser to the US president on Arab and Middle Eastern affairs, said Washington is maintaining constant coordination with the UAE and Saudi Arabia over security around Bab-el-Mandeb and the wider Red Sea.

At the Arab Media Summit in Dubai on Wednesday, Boulos said the US was maintaining direct contact with regional leaders and conducting daily military coordination concerning Red Sea security. Boulos did not disclose specific military measures being considered.

Iran attack on US-contracted vessel raises fresh Hormuz fears

A US-contracted vessel carrying American personnel was struck near the Strait of Hormuz in an Iranian attack involving drones and a missile, according to reports, in the latest escalation threatening one of the world's most important energy and shipping corridors.

Sources cited by Fox News said the vessel was targeted by four Iranian drones and at least one missile. One projectile struck the ship, causing minor injuries, including smoke inhalation, according to initial reports.

Several personnel were reportedly treated for their injuries. The US military has not confirmed the incident. The number and type of weapons involved cannot be immediately confirmed.

Oil prices above $100 are becoming a global problem

Oil prices above $100 a barrel have contributed to higher energy and transport costs globally, while protests, strikes, shortages and other forms of economic disruption have been reported in several countries.

The larger and longer the military operation becomes, the greater the potential for:

  • prolonged regional military deployments;

  • continued pressure on oil markets;

  • disruption to maritime trade;

  • additional security measures; and

  • increased uncertainty for businesses and investors.

For residents, the effects can appear through:

Petrol and transport: Higher global oil prices can affect fuel-market conditions.

Air travel: Airlines face higher operating costs when jet-fuel prices rise. Emirates, flydubai and Air Arabia have also listed cancellations on regional routes. Etihad's services to Bahrain and Kuwait are largely operating. Travellers are being advised to check their individual flight status before leaving for the airport.

Food and consumer goods: Shipping and transportation costs feed into imported products.

Construction: Energy, transport and materials costs can rise.

Business costs: Companies dependent on imported goods or international shipping can face higher expenses.

The UAE's fuel prices are adjusted according to international market conditions, meaning prolonged oil-market volatility remains relevant to households and businesses.

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