Iranians prepare funeral for Khamenei

Stocks listed in Dubai and Abu Dhabi slid on Wednesday, as UAE exchanges reopened from a two-day closure that was implemented after Iranian drone and missile strikes on the Gulf nation.

Dubai’s benchmark index was last down 4.9% in early afternoon trading, putting it on course for its worst day since May 2022. Abu Dhabi’s main index was more than 3% lower, on track for its sharpest intraday decline since August, while the Nasdaq UAE 20 was down 4.3%.

— Chloe Taylor

Qatar Airways said on Wednesday its flights will remain temporarily suspended due to the closure of the country’s airspace.

“Qatar Airways will resume operations once the Qatar Civil Aviation Authority announces the safe reopening of Qatari airspace,” the Gulf carrier said in a post on X.

Air travel around the Middle East remains restricted due to safety concerns as the U.S.-Israel war against Iran rages on.

Dubai-based Emirates said its flights remain suspended until 23:59 UAE time on March 4, while Abu Dhabi’s Etihad said all its scheduled commercial operations will be grounded until 14:00 UAE time on March 5.

— Azhar Sukri

A ceremony for Iranians to bid farewell to the late Supreme Leader Ayatollah Ali Khamenei will reportedly be held at 10 p.m. local time Wednesday.

Reuters, citing Iranian state media, said the ceremony will last three days. Authorities will announce the funeral procession at a later date.

Khamenei served as Iran’s supreme leader from 1989 until he was killed over the weekend in a joint U.S.-Israeli strike.

— Lim Hui Jie

A widening Middle East conflict has posed a fresh test for global central banks, as fears of an oil shock and renewed inflation risks complicate policymakers’ calculus for shoring up growth.

Brent crude prices extended four days of gains, rising 1.6% to $82.76 a barrel on Wednesday, hovering near the highest level since January 2025. The U.S. West Texas Intermediate crude prices also rose for a third day to $75.48.

“The ongoing Iran conflict solidifies the case for many central banks to hold rates steady for now,” a team of economists at Nomura said.

Brent crude has risen by 36% so far this year, according to LSEG data while WTI futures were 32% higher as of Wednesday.

As global natural gas prices surged, an LNG tanker bound for Europe reversed course and is now heading to Asia, according to data from analytics firm Kpler. This marks the first example of a ship diverting from Europe to Asia during the current price spike, the firm said.

European natural gas prices have surged 66% this week after Qatar shut liquefied natural gas production following Iranian strikes. The nation supplies about 20% of the world’s LNG and is the second-largest exporter, behind the U.S.

Kpler noted that the tanker, BW Brussels, highlights a widening price gap between regions as Asian buyers “compete more aggressively for supply.”

“With Asian markets highly exposed to Qatari volumes and prices surging in both Asia and Europe, further diversions for uncommitted cargoes are likely,” the firm added. That could add upward pressure to Europe’s Title Transfer Facility if buyers bid higher to retain shipments.

While more than half of Europe’s LNG imports come from the U.S., South Asia is especially reliant on LNG from Qatar and the United Arab Emirates. The sole export route for LNG from those two nations is through the Strait of Hormuz.

In 2025, Pakistan sourced 99% of its LNG imports from Qatar and the UAE, while Bangladesh and India each obtained 59%, according to Kpler.

— Pippa Stevens

Iran’s senior clerics responsible for selecting the next supreme leader are considering naming Mojtaba Khamenei, son of the late Ayatollah Ali Khamenei, to the top post, the New York Times reported Tuesday.

The clerics could announce the decision as soon as Wednesday morning, although some members had expressed concerns that the U.S. and Israel would target him, the Times said, citing three Iranian officials familiar with the discussions.

— Anniek Bao

Executives from U.S. defense contractors are expected to meet officials at the White House on Friday to discuss speeding up weapons production after recent military operations, Reuters reported, citing sources familiar with the matter.

Representatives from major contractors such as Lockheed Martin and RTX, the parent company of Raytheon, were invited to attend the meeting, according to Reuters.

Meanwhile, the Pentagon is preparing a supplemental budget request of roughly $50 billion to replenish weapons used in recent conflicts, including operations in the Middle East. The proposal, which could be unveiled as soon as Friday, is still preliminary and may change, Reuters reported, citing a source.

The meeting comes as U.S. President Donald Trump said on Tuesday that the country’s munitions stockpiles are strong, adding that the United States has a “virtually unlimited supply” of “medium and upper medium grade” weapons. It was not immediately clear what weapon grades Trump was referring to.

— Lee Ying Shan

Several U.S. diplomatic missions across the Gulf have come under attack in recent days, according to State Department cables reviewed by a source and shared with MS NOW.

Dubai authorities said Tuesday that a drone-related incident caused a fire near the U.S. Consulate in Dubai, which was quickly contained. No injuries were reported.

A drone struck the U.S. Embassy compound in Kuwait, according to a Tuesday cable, though all personnel were accounted for. Amid attacks from Iran and Iranian-backed groups targeting the embassy, the State Department approved departure for more than 200 staff and family members.

In Saudi Arabia, the U.S. Embassy in Riyadh sustained significant damage from a drone attack Monday, knocking out communication services. No injuries were reported as the embassy had already been evacuated.

The State Department and the affected embassies have not yet publicly commented on the incidents.

— Lee Ying Shan

The United States Central Command said it had destroyed 17 Iranian ships and nearly 2,000 targets, and dealt a severe blow to Tehran’s defenses.

“We have severely degraded Iran’s air defenses and destroyed hundreds of Iran’s ballistic missiles, launchers and drones,” said a senior U.S. admiral in a video posted on X.

— Lee Ying Shan