[US-Iran War] Gold Trading in Crisis as Flights Halted at Dubai, the Key Gold Market Hub

"Road Transport Is Unrealistic"

Bloomberg News reported on March 3 (local time) that a large number of flights to and from Dubai, United Arab Emirates (UAE)-the global hub for gold trading-have been canceled, resulting in dealers being unable to move physical gold.

Dubai route canceled due to attacks on Iran by the United States and Israel. Yonhap News Agency

The UAE is a key axis of the global gold market, exporting gold throughout Asia and acting as a transit point for shipments from Switzerland and the United Kingdom. However, following last weekend’s unprecedented missile attack by Iran, UAE airspace has been partially closed and Dubai flights have been suspended, leading to a complete halt in the shipment of gold and silver that was previously transported in passenger aircraft cargo holds.

According to trade and logistics industry officials who spoke to Bloomberg, gold freight shipments to and from Dubai have been suspended indefinitely. One official lamented, "We spent the entire day Monday trying to reroute cargo that was originally scheduled to pass through Dubai to its final destination."

According to trade data compiled by Bloomberg, the UAE imported 1,392 tons of gold in 2024, worth about $100 billion (approximately 147.39 trillion won). Industry insiders agreed, stating, "Transporting gold overland carries too much risk, so trucking shipments to nearby airports is realistically impossible."

Typically, gold is transported in passenger aircraft cargo holds at a low cost of less than $1 per ounce. However, insurance coverage is limited, which restricts the amount that can be shipped at one time.

Lars Johansson, a precious metals logistics expert, commented, "When transporting gold by road, it is possible to manage risk by deploying several armored vehicles and armed guards. However, crossing borders with weapons may not be permitted at all, so it is by no means an ideal method."

If the logistics disruption in Dubai becomes prolonged, dealers in major markets such as India, which source gold from the UAE, will be significantly affected. Philip Newman, Managing Director at the consulting firm Metals Focus, analyzed, "On the 2nd, the gold premium in Saudi Arabia surged, reflecting market anxiety over a potential supply shortage."

According to the flight tracking site Flightradar24, more than 12,300 flights have been canceled worldwide since Iran’s retaliatory attack. Emirates, the world’s largest international airline, has extended its suspension of Dubai-bound flights until the night of the 4th, while Etihad Airways has also suspended operations through the 5th.

This content was produced with the assistance of AI translation services.