Iran war drives UAE trade suspension and coal profit surge amid energy shock

The war involving Iran is continuing to disrupt energy and trade flows across the Gulf, with the United Arab Emirates suspending trade, commercial exchanges and financial transactions with Iran after saying it detected two ballistic missiles launched from Iranian territory. At the same time, coal producers are reporting stronger profits as buyers look for alternative fuels amid reduced oil and gas supplies. The developments underline how the conflict is rippling beyond the battlefield into shipping, commodities and regional commerce.

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According to the supplied material, the UAE moved to halt trade-related activity with Iran after the missile launches were detected. The same reporting says the wider disruption began after strikes on Tehran and Iran's closure of the Strait of Hormuz, a route that normally carries about one-fifth of the world's oil and liquefied natural gas during peacetime. The closure has reduced supplies and pushed oil prices higher, while also affecting countries that depend heavily on Gulf energy exports.

The impact has been especially visible in Asia, which receives the bulk of oil and gas shipments through the strait. The supplied material says about 82 percent of those shipments went to Asia in 2022, with China, India, Japan and South Korea among the main destinations. It also notes that Gulf producers have faced direct consequences from the conflict, including force majeure declarations and interruptions to LNG exports, showing that the disruption is affecting both buyers and sellers across the region.

The energy shock matters because it is changing short-term fuel choices in a market that was already under pressure. South Africa's thermal coal producer Thungela Resources said its half-year profits doubled as more buyers turned to coal, which remains cheaper and more readily available than oil despite its environmental costs. The supplied material says coal consumption had already been rising in 2025, including use in data centres, and the war has accelerated that shift by making other fuels harder to secure.

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The Strait of Hormuz is central to the scale of the disruption. It is one of the world's most important energy chokepoints, and any interruption there quickly affects prices, shipping schedules and supply planning. The supplied rows say Iran closed the strait soon after the strikes began, creating a broader energy crisis that has reached markets far beyond the Gulf.

That has made the conflict a geopolitical issue as well as a military one, because it affects the stability of global supply chains. The UAE's decision to suspend trade and financial transactions with Iran also points to a widening economic fallout between regional neighbours. Such measures can affect commercial ties, payment channels and the movement of goods, even when the immediate trigger is a security incident.

The move suggests that states in the Gulf are treating the conflict not only as a military threat but also as a direct risk to trade and financial stability. The supplied material also places the current disruption in a broader pattern of damage to Gulf energy infrastructure. It says Qatar was forced to declare force majeure after Iranian drones hit its Ras Laffan oil facility, the world's largest LNG complex, and that the attack knocked out 17 percent of Qatar's LNG exports by March.

It also refers to damage affecting the United Arab Emirates' Das Island LNG terminal, reinforcing the extent to which the conflict has spread into the region's energy system. What remains unclear is how long the trade suspension will last, whether the missile launches will lead to further retaliation, and how much additional pressure will fall on shipping and energy markets. The next developments to watch are any new security measures around the Strait of Hormuz, further statements from Gulf states, and whether commodity markets continue to shift toward coal and other substitute fuels.