UAE residents are facing renewed uncertainty around regional trade and energy costs as fighting escalates sharply in Yemen, Iran threatens tighter controls on the Strait of Hormuz and oil prices climb back above $100 a barrel. The UAE has also issued a fresh condemnation of Houthi attacks on Saudi Arabia, highlighting growing concern over security on both sides of the Arabian Peninsula.
Houthi attacks intensify in Yemen and Saudi Arabia
The biggest military development on Wednesday came from Yemen, where the Iran-aligned Houthis launched ballistic missiles and drones at Aden International Airport as Saudi-backed government forces continued a major offensive.
Reuters reported that the attack disrupted an incoming flight and forced emergency measures at the airport. Fighting is increasingly concentrated around the strategically important Bab Al Mandab Strait, where Yemeni government forces, backed by the Saudi-led coalition, are trying to reclaim territory from the Houthis.
The Houthis also claimed attacks on targets in Saudi Arabia, including airports in Riyadh, Abha and Khamis Mushait. Saudi authorities confirmed intercepting at least some of the incoming projectiles, although not all Houthi claims have been independently verified.
The UAE Ministry of Foreign Affairs responded on Wednesday by strongly condemning continued Houthi attacks on Saudi civilians, economic facilities and vessels in the southern Red Sea and Bab Al Mandab. The ministry reaffirmed the UAE’s “full solidarity” with Saudi Arabia.
For the UAE, instability around Bab Al Mandab matters because it is one of the world’s most important shipping routes — and has become even more significant while traffic through Hormuz remains disrupted.
Iran threatens tighter controls on Hormuz
Pressure is also building closer to the UAE.
An Iranian official said Wednesday that Tehran would soon block what it describes as “illegal routes” through the Strait of Hormuz, including passages close to Oman’s coast. Iran says some of these routes are being used to move oil outside its restrictions.
Iranian officials claim daily ship traffic through the strait has fallen from around 125 vessels before the war to about 10 today.
For UAE residents, Hormuz remains one of the most important developments to watch. Continued restrictions or attacks can increase shipping and insurance costs and complicate the movement of goods throughout the Gulf.
US-Iran negotiations remain stuck
There is still no clear diplomatic breakthrough.
US Vice President JD Vance told Reuters that Iran would need to significantly reduce its uranium-enrichment capacity before Washington would agree to end the war. He said the US wanted concrete steps rather than assurances from Tehran. Iran, meanwhile, has disputed Washington’s description of the negotiating difficulties.
That deadlock matters because the future of Hormuz remains closely linked to the wider US-Iran negotiations.
Oil moves back above $100
Energy markets reacted to the fresh escalation on Wednesday, with Brent crude climbing above $100 a barrel as investors weighed the risk to Middle Eastern supplies.
The US Energy Information Administration has also raised its oil-price forecasts, citing depleted global inventories and continuing disruption caused by the Iran war. It now expects Brent to average about $105 a barrel in the fourth quarter of 2026.
For UAE residents, that does not automatically mean an immediate rise in everyday costs. But sustained increases in oil, freight and insurance prices can eventually feed through to transport and imported goods.
For now, there is no new official UAE guidance suggesting residents need to change their normal daily routines. The main issues to watch are the Saudi-Houthi escalation, security around Bab Al Mandab and Hormuz, the US-Iran diplomatic deadlock, and oil prices.