Iran is moving to turn its effective shutdown of the Strait of Hormuz into regulating passage of ships from selected countries through the strategic waterway.

Traffic through the Gulf channel has climbed to its highest level in weeks as more countries and shipping firms secure passage agreements with Iran, Bloomberg reports. 

Liquefied petroleum gas carriers and tankers linked to countries including India have been among the most active, with ships transiting under negotiated arrangements as Tehran permits carefully vetted cargoes to move.

Malaysia-linked and Iraqi crude shipments are also moving, including a Petronas-chartered tanker carrying about 1 million barrels, after Tehran granted exemptions or toll-free passage following diplomatic engagement. At the same time, Japanese, French and vessels from selected other countries have crossed along carefully managed routes.

Governments from the UAE and India to the Philippines, meanwhile, are bracing for fallout in the coming days when the deadline U.S. President Donald Trump set for Iran to open the Strait of Hormuz expires. 

Trump said U.S. forces would destroy Iranian power plants and bridges if Iran fails to comply with his ultimatum by 8 p.m. Washington on Tuesday – 3:30 a.m. Wednesday in Tehran. Iranian officials say they won’t obey Trump and have promised to respond with attacks on power plants in Israel and Arab states allied with the U.S.

The shutdown of the Strait of Hormuz is threatening income flows to the Philippines by disrupting economic activity across Gulf states where more than 2 million Filipino workers are employed. As companies cut operations, transfers sent home through banks and exchange agencies have been slowing, putting pressure on household incomes in a country where remittances account for roughly 10% of GDP.

At the same time, the disruption is hitting India’s fertilizer supply chain, which depends heavily on Gulf exports of urea and ammonia that move through Hormuz during the peak planting season. With shipments delayed or halted, Indian importers face tighter supplies and rising costs, raising the risk of lower yields and higher food prices in the months ahead.

Abu Dhabi’s green energy company Masdar is forming a $2.2 billion joint venture with France’s TotalEnergies, merging onshore renewable operations across nine Asian countries.

The new company will develop, own and operate solar, wind and battery projects with 3GW of capacity already operational and 6GW expected to be in advanced development by 2030.

Masdar’s global renewable portfolio is rapidly expanding, with a goal of reaching 100GW by 2030.

It comes as the Abu Dhabi-based International Renewable Energy Agency said on Wednesday that the Middle East added a record 12.7GW of renewable energy last year, led by Saudi Arabia, which added more than 5.7GW.

The UAE has issued an advisory banning Iranian nationals from entering or transiting through the country, with a few exceptions.

The restrictions come amid heightened tensions from the Iran war, with airlines and travel advisories adjusting policies rapidly.

Emirates airline said that those who have a Golden Visa, are married to UAE nationals or born to an Emirati woman will be allowed in, as well as athletes, bank executives, doctors, families, engineers, investors, senior professionals or traders.

The UAE, a key global aviation hub, serves as a major transit point for international travelers, meaning that restrictions on certain nationalities can ripple across regional travel and airline operations.

Travelers are urged to review the latest entry requirements before booking or flying, as rules may change rapidly due to regional developments, the airline said. 

The head of the UAE’s national oil company said Iran’s disruption of shipping through the Strait of Hormuz amounts to extortion, as attacks and threats against vessels curb traffic through the key energy corridor.

“When Hormuz flows, energy moves and economies grow – when it is disrupted, everyone pays.” Dr. Sultan Al Jaber, Group CEO of ADNOC and the UAE’s Minister of Industry and Advanced Technology, said in a LinkedIn post.

Warning that the crisis risks undermining global energy markets, Al Jaber called for international cooperation “to protect the free flow of energy and safeguard economic stability.”

Meanwhile, Saudi Arabia’s oil exports fell by about 50% in March, dropping by roughly 3 million to 3.5 million barrels a day because of the blockade, Bloomberg reports.

The disruption has forced Saudi Aramco, the world’s biggest oil exporter, to rely on its East-West pipeline to move crude to Red Sea ports, which have capacity of roughly 5 million barrels a day, compared to normal export levels of about 7 million barrels a day.

The UAE is pressing ahead with major overseas investments despite the war, as Abu Dhabi’s International Holding Co. expands in the U.S. energy industry with a new multibillion-dollar deal.

IHC’s 2PointZero unit agreed to pay about $2.25 billion for a stake in U.S. natural gas producer Expand Energy in a transaction that gives the Abu Dhabi-backed platform access to upstream gas production and associated infrastructure as it builds a global energy portfolio, Bloomberg reports.

UAE Ambassador to Washington Yousef Al Otaiba told business leaders last week that Emirati investors would stand by roughly $1.4 trillion in planned and existing investments in the U.S., stressing that the economic partnership would remain “strong and enduring.”

In a separate transaction, IHC said it received regulatory approval for a deal worth about $1 billion to acquire a stake in Indian mortgage lender Sammaan Capital as part of a strategy to build controlling positions in finance and other high-growth industries.

IHC is chaired by Sheikh Tahnoon bin Zayed, the UAE National Security Adviser who also oversees a network of state-linked investment vehicles. 2PointZero was established as a platform to spend tens of billions of dollars globally, with the U.S. gas deal among its largest transactions to date.

Dubai is rolling out a 1 billion-dirham ($272 million) package of economic incentives to cushion businesses and households from war-related disruptions.

The new measures – which include deferred government fees, delayed hotel levies and extended customs grace periods to boost liquidity – were approved today by Crown Prince Sheikh Hamdan bin Mohammed, Chairman of the Executive Council of Dubai.

The package will be introduced over the next three to six months and includes streamlined residency permits aimed at attracting talent.

A U.N. Development Program analysis estimates Arab economies could lose between $120 billion and $194 billion in GDP due to the conflict’s impact.

The Iran war is hitting global aluminum supplies, with Emirates Global Aluminium and Bahrain’s Alba both reporting damage to key facilities after Iranian strikes.

EGA’s Al Taweelah plant in Abu Dhabi, one of the world’s largest aluminum sites, was hit in a weekend attack that injured workers and disrupted operations.

The incidents underscore how the conflict is expanding beyond oil into core industrial metals that feed global manufacturing supply chains, The Wall Street Journal reports.

Prices have begun to climb as traders factor in the risk of prolonged disruption to Gulf production. Aluminum prices on the London Metal Exchange jumped 6% on Monday, nearing four-year highs.

Gulf states are moving to protect their economies from a war-driven credit squeeze, as central banks in Qatar, the UAE and Kuwait roll out measures to keep loans flowing and prevent a broader financial shock. 

Qatar’s central bank has allowed banks to defer loan repayments for up to three months for affected businesses and individuals, while instructing lenders not to impose penalties during the relief period, Bloomberg reports. 

The move is aimed at easing immediate liquidity stress as companies face delayed shipments, weaker demand and rising insurance and financing costs.

In the UAE, authorities have taken parallel action by easing capital requirements to ensure credit remains available, particularly for small and medium-sized enterprises exposed to supply chain disruptions. 

Kuwait has also signaled support for its financial system, with policymakers indicating readiness to step in to stabilize markets and assist businesses if conditions worsen.