Middle East
Middle East war costs tourism sector $600mn a day, FT reports
The conflict engulfing the Middle East is costing the region’s tourism industry an estimated $600 million a day in lost visitor spending, according to projections from a global travel industry body.
Flight cancellations, airspace closures and mounting anxiety among prospective travellers are battering the region’s tourism economy after Tehran launched retaliatory strikes against several Gulf states following US and Israeli attacks on Iran.
“Even short-term disruptions can quickly translate into significant economic losses for destinations, businesses and workers across the region,” Gloria Guevara, president of the World Travel and Tourism Council, which produced the estimate, told the Financial Times.
Travellers moved swiftly to cancel regional holidays. According to reservation data compiled by analytics group AirDNA from platforms including Airbnb and Vrbo, more than 80,000 short-term rental bookings in Dubai alone were cancelled in the week ending March 6.
Before the conflict erupted, the World Travel and Tourism Council had projected that international visitors would spend approximately $207 billion across the Middle East this year.
Cities such as Dubai had flourished by marketing themselves as synonymous with luxury, year-round sunshine and security. Some of the world’s most opulent hotels now find themselves caught in the crossfire. Debris from missile-interception systems rained down on Dubai’s Burj Al Arab, while Accor’s Fairmont The Palm on Palm Jumeirah sustained a direct hit.
Major regional hubs — Abu Dhabi, Dubai, Doha and Bahrain — typically handle more than half a million air passengers each day. Yet five days of flight cancellations across the region stranded an estimated four million passengers last week, according to aviation data provider Cirium.
Hundreds of evacuation flights subsequently departed from Middle Eastern airports to repatriate the tens of thousands of visitors who remained stranded.
Dubai resumed flights last week, restoring roughly a quarter of its services by Thursday. Qatar reopened its airspace over the weekend, only to close it again on Sunday; a handful of flights operated on special permits by Tuesday.
Holiday destinations across the Middle East have previously demonstrated resilience following periods of conflict. Revenue per available room — a key performance metric in the hospitality industry — plunged sharply in Qatar within a week of Israel striking Doha last September, but returned to growth in under a month, according to data from hospitality analytics firm CoStar.
Some analysts expect business travel to rebound, given the region’s strategic position as a transit corridor between Europe and Asia, while leisure travellers may look elsewhere. “If you’re personally searching for somewhere to take your family on holiday, you can easily pivot to another destination that ticks all the boxes,” said Matthew Pohlman, a partner at Goodwin, a law firm specialising in hospitality and leisure.
Others are more sanguine. Richard Clarke, an analyst at Bernstein, offered a measured assessment: “There’s a reason this region is popular. Demand won’t be strong while explosions are continuing… but I think people will come back as soon as this is over. Travellers have shorter memories than investors.”
Middle East
Iran says US strikes have rendered April ceasefire meaningless
Iran’s Foreign Ministry said US attacks on targets inside Iran during the night of June 11 had “effectively rendered meaningless” the ceasefire arrangement that entered into force between the parties in April.
According to a statement carried by the Tasnim news agency, “The illegal and criminal attacks carried out by the United States in recent hours constitute not only a grave violation of the United Nations Charter and the fundamental norms of international law, but have also effectively rendered the ceasefire regime meaningless.”
Iran also stressed that countries in the region have a legal and moral responsibility not to allow the US military to use their territory and resources to conduct attacks.
The statement further pledged to “neutralize the source of the aggressive actions.”
US strikes lasted four hours
According to a statement from US Central Command, American armed forces launched strikes against targets in Iran on the night of June 11 “in self-defense.”
“These strikes are a response to Iran’s unjustified and ongoing aggression,” the statement said.
Approximately four hours after the operation began, the US military announced that it had concluded the mission.
According to the statement, the targets included intelligence and surveillance facilities, communications systems and air defense positions. The operation involved units from the US Marine Corps, Air Force and Navy.
Axios reporter Barak Ravid wrote on X that the United States had struck military targets in southern Iran.
According to reports from the IRNA, Mehr, Tasnim and Fars news agencies, explosions were reported on Kish Island, east of Isfahan, in Mohr, and in the Hormozgan province districts of Sirik, Minab, Qeshm and Hengam.
Air defense systems were also reported to have been activated around the airport and military base in Bandar Abbas.
Iran announces closure of the Strait of Hormuz
Iran announced that it had closed the Strait of Hormuz to all maritime traffic, including tankers and commercial vessels.
According to Mehr, the naval arm of the Islamic Revolutionary Guard Corps attacked two commercial ships attempting to transit the strait.
The Revolutionary Guards also said that 12 ballistic missiles struck a location hosting US F-35, F-15 and F-16 fighter aircraft. The statement added that targets at Jordan’s Azraq Air Base and a “command center” had also been hit.
US President Donald Trump had previously warned that attacks on Iran could resume after negotiations failed to make progress and following the destruction of a US Apache attack helicopter.
The helicopter was reportedly shot down off the coast of Oman on the evening of June 8, although both pilots were rescued.
Iranian President Masoud Pezeshkian condemned US threats and said his country would “maintain its resolute stance.”
A two-week ceasefire between the parties entered into force in April and was later extended indefinitely by Trump until further notice. Despite the ceasefire, however, the two sides had engaged in several rounds of retaliatory attacks.
Middle East
US submits draft IAEA resolution demanding immediate Iranian cooperation on enriched uranium
The United States has approached the Board of Governors of the International Atomic Energy Agency (IAEA) to determine the fate of Iran’s highly enriched uranium.
According to a report by Reuters, which cited diplomatic sources and obtained a draft resolution prepared by the US and presented to member states, Tehran is being called upon to provide the agency with precise and clear information regarding its nuclear material accounting and monitored nuclear facilities.
The text drafted by the US demands that the Tehran administration grant all necessary access permissions required to verify this information. The draft resolution emphasizes that Iran’s cooperation is a vital and urgent necessity, stating that the process must be executed without any delay.
The current draft does not yet include a referral to the United Nations Security Council (UNSC), which would typically be expected following an IAEA resolution declaring that Iran has violated its obligations under the Treaty on the Non-Proliferation of Nuclear Weapons (NPT). That violation decision was issued on June 12, 2025, one day before a 12-day war waged by the US and Israel against Iran last year. Diplomats speaking to Reuters indicated that the option of referring the matter to the UNSC remains under evaluation.
The Al Mayadeen television channel also reported, based on a copy of the draft resolution it obtained, that Washington is lobbying member states of the IAEA Board of Governors intensively to support its position.
These diplomatic moves coincide with a call from IAEA Director General Rafael Grossi for renewed engagement with Tehran. In his statement, Grossi said, “I call on Iran to work constructively with the agency to facilitate the full and effective implementation of safeguards in Iran. Re-engaging is of utmost importance.”
Reuters had previously reported in early June that the US was preparing a draft resolution to censure Iran at the upcoming IAEA meeting.
The Tehran administration continues to accuse the IAEA of systematically leaking sensitive and confidential information to Israel. At the end of the 12-day war last year, the US targeted Iran’s critical nuclear facilities and claimed to have destroyed Tehran’s entire nuclear program. However, intelligence assessments at the time revealed that Washington’s claims did not reflect reality.
Since those attacks, the IAEA has been requesting access to the struck nuclear facilities for inspection purposes. Iranian Foreign Minister Abbas Araqchi characterized the agency’s request last year as malicious.
In early April, Washington announced it had launched a rescue operation for a pilot downed in Iranian airspace. However, during the operation, US forces encountered stiff resistance from Iranian soldiers and, according to reports in the press, lost numerous aerial assets.
Following these developments, the Iranian Ministry of Foreign Affairs issued a statement suggesting that the military move conducted by the US under the guise of a pilot rescue operation may have been part of a deceptive and covert mission with the actual objective of stealing enriched uranium.
Middle East
IAEA reports no major change in Iran nuclear assessment despite three months of conflict
The International Atomic Energy Agency (IAEA) reported no major changes in its assessments of Iran’s nuclear program since clashes between the US, Israel, and Iran began approximately three months ago, according to a report sent to United Nations (UN) member states on Thursday.
The confidential report, reviewed by the Reuters news agency ahead of next week’s meeting of the IAEA’s 35-nation Board of Governors, revealed very few differences compared to previous reports prepared before the conflict began.
In the report, the agency reiterated its call for Iranian officials to provide updated information on the status of their enriched uranium stockpiles.
According to Reuters, the report stated: “The Director General has stressed that the effective implementation of Iran’s Treaty on the Non-Proliferation of Nuclear Weapons (NPT) Safeguards Agreement is mandatory and urgent, and that this implementation cannot be suspended by Iran under any circumstances.”
Since Israel and the US bombed the nuclear installations for the first time last June, the UN nuclear watchdog has been unable to return to these sites, and Iran has not shared updated data regarding the status of its stockpiles.
“The issue of the Agency losing continuity of knowledge regarding all previously declared nuclear material at the affected facilities in Iran needs to be addressed with extreme urgency,” the confidential report warned, referring to the sites affected by the US and Israeli bombardments.
Iran’s nuclear program became one of the primary triggers of the conflict, with the Trump administration asserting that Iran posed an “imminent nuclear threat.”
The issue also represents one of the greatest impasses in the recent round of negotiations aimed at ending the conflict.
Nevertheless, both sides have reached a tentative agreement to extend the delicate ceasefire in the three-month conflict for an additional 60 days, reopen the Strait of Hormuz to transit, and establish a framework mechanism for comprehensive talks on the future of Iran’s nuclear program and stockpiles.
However, this emerging memorandum of understanding still awaits approval from President Donald Trump and Iranian leaders.
According to a report by The Associated Press, US Secretary of State Marco Rubio painted an optimistic picture of the talks between the US and Iran during his testimony on Tuesday before the Senate Foreign Relations Committee and the House Appropriations Subcommittee.
“Just a month ago, they agreed to negotiate certain aspects of their nuclear program that a year ago they refused to even mention,” Rubio told senators, later adding that instability within the Iranian leadership has complicated the talks.
Meanwhile, US Vice President JD Vance noted last Thursday that negotiators continue to exchange proposals on certain terms of the agreement, including Iran’s nuclear capacity.
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