War With Iran Disrupting Diamond and Gold Trade

By Rob Bates | March 03, 2026

Iran’s bombing of sites in Israel, the United Arab Emirates (UAE), and other Gulf countries, in response to U.S. and Israeli strikes against Iran, could disrupt the diamond and gold trade worldwide, industry sources say.

While sporadic missile assaults have become an unfortunate fact of life in Israel, the attacks on Dubai were unprecedented for a city generally considered an oasis of safety in a volatile region.

Dubai International Airport, which suffered damage during one attack, was shut down for 48 hours, though limited flights resumed last night.

Emirates Airlines announced on X today that all its “flights to and from Dubai remain suspended until 23:59 UAE time on 4 March, due to airspace closures across the region.” However, the post said a “limited number of passenger repatriation and freighter flights” will leave the airport on March 3 and 4.

Ahmed bin Sulayem, executive chairman and CEO of the Dubai Multi Commodities Centre (DMCC), tells JCK his organization is monitoring the situation and its staff is working from home.

“The UAE has consistently demonstrated resilience during periods of regional and global volatility, and we are confident that trade, logistics, and financial activity will continue to operate without long-term disruption,” he says. “We are grateful for the swift and effective response of the UAE’s defense and national security authorities, whose actions have helped maintain stability.”

The Israel Diamond Exchange has been mostly closed for the past few days, but president Nissim Zuaretz says “about 200” people are still coming in.

“It’s not closed 100%,” he says. “If people want to go, they can go. I think in the next week, we will come back slowly, slowly.”

Although residents of the affected countries may start to resume their regular routines, trading could take a little while longer to get back to normal, experts say.

Kirit Bhansali, chairman of India’s Gem & Jewellery Export Promotion Council (GJEPC), said in a statement that “the situation is a matter of serious concern, and we hope for stability and peace to return at the earliest to make it conducive of conducting regular business activities.

“From an industry standpoint, the Gulf Cooperation Council (GCC) countries and MENA [Middle East and North Africa] region is not only an important export destination for India’s gem and jewelry sector, but also a key hub where Indian companies have established business interests,” Bhansali said. “The Gulf region is also home to a large Indian diaspora, many of whom are directly associated with the gem and jewelry trade.

“Given these deep connections, any prolonged instability can have implications for business sentiment, movement of goods, imports of raw materials, exports of finished goods, and overall market dynamics.”

According to GJEPC, Indian gem and jewelry imports surged from $9.8 billion to $28.1 billion in 2025. Dubai has been considered the world’s largest rough diamond trading hub since 2021.

Nikhil Madrasi, president of the Southern Gujarat Chamber of Commerce and Industry, which includes the Indian diamond polishing capital of Surat, told a local news outlet that the conflict could strain the already challenged industry.

“Israel is a major diamond trading hub. Instability there disrupts the supply of rough stones to Surat. With the U.S. involved, luxury demand could weaken further.… If this continues, employment in diamond units will be hit.”

The gold market has also been thrown for a loop. The shutdown of Dubai’s airport “has introduced a rarely discussed friction into bullion markets: physical delivery,” wrote gold information site Kitco. “Traders reported scrambling to reroute consignments mid-transit…. The disruption, even if temporary, highlights a structural vulnerability in gold’s global logistics network at precisely the moment when demand is spiking.”

Gold prices have also been affected: They shot up past $5,400 after the initial U.S. air strikes. At press time, the yellow metal was trading at just over $5,000.

Top: Gold at a Dubai souk (photo: Getty Images)