Oil and Gold Surge as Middle East Tensions Rattle Global Markets

Abu Dhabi, UAE – 2 March 2026: Escalating tensions in the Middle East have sent shockwaves through global markets, pushing oil and gold sharply higher and raising fresh questions about the near-term outlook for regional equities.

Josh Gilbert, Market Analyst at eToro, said: “Markets hate uncertainty, and right now investors are facing one of the most unpredictable geopolitical backdrops in years. The key question is not just what has happened, but how
long this disruption lasts and whether we see escalation or de-escalation in the coming days.”

The Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM) remain closed on Monday and Tuesday in a rare move outside scheduled holidays, highlighting the seriousness of the situation. Investors are now focused on what reopening could look like once trading resumes.

“History shows that outcomes vary widely,” Gilbert added. “When Turkey suspended trading after the 2023
earthquake, markets rallied strongly on reopening. When Russia halted trading after invading Ukraine, the outcome was far more severe. For UAE markets, the next 48 to 72 hours will be critical.”

Oil in Focus

Oil has been the immediate flashpoint. Brent crude surged as much as 13% to around US$82 per barrel, driven by fears of disruption in the Strait of Hormuz, which carries roughly 20% of the world’s crude oil and LNG supply.
“Even without a full closure of the Strait of Hormuz, disruption to tanker traffic is enough to rattle energy markets,” said Gilbert. “Conflicting signals from Iran have added to the uncertainty investors are trying to price in.”
There are, however, short-term buffers in place. The global oil market entered this period with relative oversupply, and OPEC+ had already announced a production increase of 206,000 barrels per day for April. Major consumers such as the US and China also hold substantial strategic reserves, while Saudi Arabia has pipeline capacity to reroute some exports.
“These measures provide short-term cushioning,” Gilbert noted. “But if tensions persist, sustained higher oil prices will filter through to transport costs and ultimately inflation globally.”

Gold Surges, Risk Assets Weaken

Gold has once again acted as the clearest safe haven, climbing above US$5,350 per ounce and gaining roughly 22% year-to-date.
“Gold remains the asset investors turn to in times of geopolitical stress,” Gilbert said. “Unless we see meaningful de-escalation, that safe-haven demand is unlikely to fade.”
Meanwhile, higher-risk assets, including cryptocurrencies, have come under pressure as investors rotate toward defensive positions.
“In risk-off environments, capital typically flows to traditional safe havens rather than more volatile assets,” he added.

Direct Impact on the UAE

For the UAE, the implications extend beyond market volatility. Real estate, tourism, aviation, and retail — key pillars of economic diversification — are particularly exposed.

Dubai averaged approximately 13,000 home sales per month last year at an average price of AED 2.5 million, largely supported by foreign investment and expatriate inflows. With around 350,000 new units expected to come to market over the next two years, any sustained hit to confidence or capital flows could challenge demand absorption.
Tourism is another critical sector. Travel and tourism accounted for around 13% of UAE GDP in 2025. With hundreds of flights cancelled and temporary airport disruptions reported, the impact is already being felt.
“Dubai’s retail and hospitality ecosystem depends on connectivity,” Gilbert said. “Any prolonged disruption to airspace or tourism confidence will weigh on near-term growth.”
While higher oil prices may offer fiscal support, the UAE economy today is far more diversified and services-driven than it was a decade ago.
“That means disrupted tourism, grounded flights, and shaken investor sentiment matter more than ever,” Gilbert explained.

Staying Focused on the Long Term

Gilbert cautioned against reactive decision-making. “The instinct in moments like this is to act, but for most long-term investors, doing very little is often the wiser approach. Selling into panic rarely proves to be the right decision in hindsight.”
He concluded: “There is room for volatility when UAE markets reopen, particularly as very little geopolitical risk had been priced in. However, if de-escalation emerges quickly, the long-term fundamentals of the UAE — strong infrastructure, a pro-business regulatory framework, and its role as a regional hub — remain intact. Short-term turbulence does not undo decades of structural progress.”

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Bitcoin Records Five Consecutive Monthly Losses as Major Banks Move to Integrate
Crypto into Traditional Finance

Abu Dhabi, UAE – 2 March 2026: Bitcoin ended February down 15%, marking five consecutive months of losses and a 48% decline from its all-time high of $126,500 in October 2025.
For the first time in its history, both January and February have closed in negative territory in the same year. Should March also finish lower, it would mark six consecutive monthly declines — only the second such occurrence on record.
Simon Peters, Crypto Analyst at eToro, commented:
“Bitcoin has started March on the backfoot amid rising geopolitical tensions in the Middle East, which have triggered
a broader flight from risk assets. This week’s US economic data — including ISM manufacturing and services PMI,
ADP employment figures, and non-farm payrolls — will be closely watched ahead of the Federal Reserve’s next
meeting. While markets are currently pricing in a hold on rates, softer data could increase expectations of a cut,
potentially providing much-needed support to cryptoasset prices.”

NEAR rose 17% last week, climbing from $1.009 to $1.184 following NEARCON 2026 in San Francisco. Key announcements included the Near.com Super-App, enabling account management across more than 35 blockchains without manual bridging, and “Confidential Intents,” a privacy execution layer designed to shield cross-chain transaction details.
Polkadot (DOT) also gained 17% in anticipation of a major supply reduction on 14 March, which will cut annual token issuance by more than 50% — from approximately 120 million tokens to 55 million.

Institutional Adoption Accelerates

Citibank announced plans to integrate bitcoin into its core banking systems, aiming to make the asset “bankable.”
The proposed services include institutional-grade custody of bitcoin, key management and wallet services, and the extension of traditional tax, reporting and compliance workflows to digital assets. The service is expected to launch later this year.
In the UK, Barclays is reportedly exploring the development of a blockchain platform for stablecoin payments and tokenised deposits. Earlier this year, Barclays acquired a stake in Ubyx, a US-based clearing system for digital money, marking its first direct investment in stablecoin infrastructure.
These developments highlight the continued convergence between traditional finance and the digital asset
ecosystem.
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