Investors are girding for the possibility of more oil price spikes, shipping disruptions and flight cancellations following the U.S. bombing of Iranian nuclear facilities on Sunday.

Goldman Sachs floated a scenario for benchmark crude prices rising more than 40% to $110 a barrel if oil tanker traffic through the Strait of Hormuz is cut in half for a month and supply shortages of 10% continue through the next year.

Brent crude jumped as much as 3% today to its highest level since January.

Air France, Singapore Air, Iberia and Finnair are among the international carriers that have canceled flights to several Gulf destinations this week, including Dubai, Doha and Riyadh.

Investment banks and other international firms that have been building up their presence in the Gulf are reviewing contingency plans for evacuating employees and their families out if the conflict escalates.

Japan’s Mitsubishi UFJ Financial Group has started to pull the families of staff out of locations including Dubai, and will consider evacuating workers if they need to accompany them, Bloomberg reports.

The Mizuho and Sumitomo Mitsui firms are also talking to staff about returning to Japan from offices in Qatar, the UAE and other locations.

Gulf leaders, meanwhile, are in close touch with each other to assess the impact of escalating military conflict in the region.

UAE President Sheikh Mohamed bin Zayed held a round of phone calls on Sunday with Gulf neighbors including Saudi Crown Prince Mohammed bin Salman; Sheikh Mishal Al-Sabah, Emir of Kuwait; Sheikh Tamim Al Thani,  Emir of Qatar, and Oman’s Sultan Haitham bin Tariq.

He also spoke with French President Emmanuel Macron and Italian Prime Minister Giorgia Meloni.

Oman’s Sultan Haitham bin Tarik has approved a personal income tax law to be implemented on individuals earning more than $110,000 annually.

The measure, which will be imposed starting in 2028, positions Oman as the first Gulf state to levy personal income tax, part of broader efforts to diversify revenue away from oil.

An earlier draft proposing separate thresholds for Omanis and expatriates was rejected by the Sultan.

With 2.7 million workers – 1.8 million expatriates – the reform is projected to raise over $285 million annually.

Two of China’s top e-commerce companies, JD and Meituan, are joining the fray in Saudi Arabia’s booming home delivery market.

JD has launched JoyExpress, a same-day delivery service across the kingdom.

Meituan, meanwhile, is investing $267 million to expand its food delivery brand Keeta in the region.

Both companies are rapidly scaling their operations in the kingdom, establishing warehouses, sorting centers and delivery networks to support their regional growth.

Foreign direct investment in the UAE soared 48% last year as the Gulf state bolstered its international ties through a series of free-trade agreements.

Sheikh Mohammed bin Rashid, the UAE Vice President and Ruler of Dubai, hailed the milestone on Thursday, calling the $45.5 billion (AED 167 billion) in FDI an “international vote of confidence” in the Emirati economy.

The UAE, which is the Arab world’s second-largest economy after Saudi Arabia, accounted for 37% of total foreign investment in the region, Sheikh Mohammed said, citing the U.N. Conference on Trade and Development’s 2024 World Investment Report.

The government has launched a series of initiatives that helped boost FDI, including reducing visa restrictions, speeding up professional licensing procedures, issuing golden visas for foreign residents and providing generous incentives to attract tech companies, The National reports.

The UAE also widened its campaign to sign free-trade pacts known as the Comprehensive Economic Partnership Agreements, adding deals with Costa Rica, South Korea, Chile and Australia in 2024.

UAE school operator Taaleem has agreed to buy a 95% stake in Dubai-based early learning provider Kids First Group, which manages 34 nurseries catering to 5,000 students across the UAE and Qatar.

KFG founder Kamil Najjar will retain a 5% stake and stay on as CEO.

Taaleem, which is listed on the Dubai Financial Market, said the acquisition would be self-funded through equity and debt.

Taaleem shares were up 6% today following the announcement.

Last year Taaleem signed a deal with Harrow School, the 450-year-old British boys school that counts Winston Churchill among its alumni. It is set to open two new Harrow facilities in the UAE next year.

The UAE’s expanding ties with Silicon Valley are paying dividends for the economy amid new joint investments in artificial intelligence.

Among the major contributors to the Gulf state’s economic growth last year was Google, whose products contributed $6 billion to GDP, according to a report released today by Public First, a London-based consulting firm.

The search company’s tools, particularly in advertising, mapping and through its YouTube and Gemini AI units, fueled growth in business and individual productivity, said the economic impact report, which was commissioned by Google.

“The report reflects our investment in accelerating the country’s ambitious journey towards a diversified, AI-powered economy,” Anthony Nakache, Google’s Managing Director for the Middle East and North Africa, said in the report’s introduction.

In the UAE, 63% of adults surveyed said they had used Gemini, Google’s AI assistant, and 90% of those users said it improved their productivity. More than two-thirds said Gemini was easier to use in Arabic than other AI chatbots.

The UAE plans to spend hundreds of billions of dollars to establish itself as a world leader in AI infrastructure, establishing partnerships through its G42 tech firm and MGX investment fund with firms including Microsoft, Nvidia, OpenAi and Oracle.

Dr. Sultan Al Jaber, the UAE Minister of Industry and Advanced Technology and Chief Executive of the state-owned ADNOC oil company, pledged to boost investments in the U.S. by sixfold during a conference in Washington.

Calling for a global overhaul of national power grids to accommodate the massive demands of artificial intelligence, Al Jaber told the Atlantic Council Global Energy Forum on Tuesday that the industry must upgrade its technology while utilizing the broadest menu of resources, including oil, gas, nuclear and renewables.

“You can’t run tomorrow’s technology on yesterday’s grid,” Al Jaber said. “Many of our grids were built for a completely different century.” 

XRG, ADNOC’s new international investment arm, plans to inject some $440 billion into the U.S. energy industry over the next decade, Al Jaber said.

The fund is an investor in Houston, Texas-based NextDecade’s Rio Grande LNG export facility while Abu Dhabi renewable energy company Masdar, partly owned by ADNOC, has developed 5.5GW of production and storage capacity “from coast to coast,”, Al Jaber said.

Touching on the war between Israel and Iran, Al Jaber called on all parties to show restraint. “The United Arab Emirates stands for dialogue, for de-escalation and diplomacy,” he said.

“We reaffirm our belief in peace over provocation, calm over confrontation and progress through partnership, and only partnership,” Al Jaber said.

Dar Global, the Saudi developer behind Dubai’s planned $1 billion Trump Tower, expects the building to sell out by the end of summer and is planning to launch more projects with the Trump Organization.

The project, launched in April, is expected to be finished in five years and will feature more than 500 homes, with two $20 million penthouses, a Trump-branded hotel and a clubhouse.

“Sales have been strong, [there has been] very good reception for the brand, for the mix and the location,” Dar Global CEO Ziad El Chaar told The National.

Dubai’s property market has continued its steep ascent, with the average price per square foot reaching AED 1,808 ($492) in May.