Iran under mounting US economic squeeze as Gulf trade and travel face uncertainty

Strait of Hormuz tensions, fresh US sanctions and ongoing diplomatic efforts remain the key developments, while UAE travellers face continued flight changes.
For UAE residents, the biggest concern remains the Strait of Hormuz, the vital waterway through which a significant share of the world's oil trade passes. Disruption there could affect shipping, travel, trade oil prices and the wider Gulf economy.
Here are the key developments to know this evening:
Iranian President Masoud Pezeshkian acknowledged that people in the country are facing serious difficulties as US economic pressure intensifies.
Speaking on state television, Pezeshkian said: “I understand we have many problems in society right now,” adding that his government was trying to limit their impact.
His comments came as Washington prepares a new round of sanctions aimed at putting further pressure on Iran. The US has described the planned measures as among its toughest yet.
Pezeshkian has also backed renewed diplomacy, saying a memorandum of understanding with Washington could provide a way out of the current deadlock.
The Strait of Hormuz remains effectively restricted, with Iran saying it will not reopen the waterway until the US changes its position.
The situation is being closely watched in the UAE because any prolonged disruption could affect:
Oil and fuel prices
Shipping and freight costs
Regional trade
Supply chains
Gulf economies
Reports indicate that the number of vessels passing through the strait has fallen sharply, with daily crossings in the single digits.
Iran has also stepped up its warnings to other countries. Mohsen Rezaei, secretary of Iran's Supreme National Security Council, warned countries against taking part in the US-led economic pressure campaign.
He said countries that participate in sanctions against Iran would be considered “enemies” and warned that Tehran could take action against their interests.
The warning comes as Washington seeks support from other countries, including major buyers of Iranian oil, for its latest sanctions campaign.
Iranian Foreign Minister Abbas Araghchi dismissed the latest US sanctions threats as a familiar strategy.
He said Tehran had dealt with similar economic pressure before and accused Washington of resorting to the same approach rather than pursuing respectful negotiations.
Despite the increasingly hostile rhetoric, Iran's president has continued to speak in favour of diplomacy, highlighting a push within Tehran to find a way out of the conflict while the country's economy comes under greater strain.
There is also a fresh diplomatic effort involving Pakistan.
Pakistan's army chief, Field Marshal Asim Munir, is due to travel to Tehran on Monday as Islamabad seeks to help reduce tensions and support efforts towards a regional settlement.
Iran said the visit would include discussions on peace and security, while reports indicate that the Strait of Hormuz, US sanctions and other regional issues are expected to feature in the talks.
The visit offers another potential channel for diplomacy at a time when direct US-Iran talks remain stalled.
Rezaei has also warned that the conflict could encourage more countries to seek nuclear weapons.
He argued that military action against Iran could weaken confidence in international nuclear safeguards and non-proliferation agreements.
The comments underline a wider concern that the conflict could have consequences beyond the immediate US-Iran confrontation, particularly if diplomatic efforts fail.
For people flying from the UAE today, airline schedules remain mixed.
Emirates, Etihad Airways, Air Arabia and flydubai continue to operate many services, but some regional flights have been cancelled, delayed or changed at short notice. Emirates has cancelled two Dubai-Bahrain services, while several Air Arabia flights involving the UAE, Kuwait and Bahrain have also been affected. Etihad's services to Bahrain and Kuwait are largely operating, while flydubai continues to operate flights to Kuwait, Bahrain and Saudi Arabia.
If you are travelling today:
Check your flight status immediately before leaving for the airport.
Do not rely solely on an earlier confirmation.
Arrive at least three hours before departure, or follow your airline's specific advice.
Allow extra time for traffic, check-in, security and immigration.
Keep your mobile number and email details updated with the airline.
Be prepared for last-minute delays, cancellations or route changes.
Follow your airline and airport's official channels for the latest updates.
Airlines continue to adjust schedules and routes as the regional security situation develops.
The main developments to monitor are:
Strait of Hormuz: Any further restrictions or disruption to shipping.
US sanctions: Details and implementation of Washington's new measures.
Diplomacy: Pakistan's efforts and any movement towards renewed US-Iran talks.
Oil prices: Further disruption could put additional pressure on energy markets.
Flights: Airlines may continue to change schedules, particularly on Gulf routes.
For UAE residents, the immediate picture remains one of heightened tension but continued air connectivity, with the situation capable of changing quickly. The Strait of Hormuz and the next round of US sanctions will be the two key developments to watch.