{"id":59383,"date":"2026-03-04T02:38:33","date_gmt":"2026-03-04T06:38:33","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/middle-east-crisis-dubai-markets-plunge-5-as-israel-strikes-tehran-and-iran-prepares-for-khamenei-farewell\/59383\/"},"modified":"2026-03-04T02:38:33","modified_gmt":"2026-03-04T06:38:33","slug":"middle-east-crisis-dubai-markets-plunge-5-as-israel-strikes-tehran-and-iran-prepares-for-khamenei-farewell","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/middle-east-crisis-dubai-markets-plunge-5-as-israel-strikes-tehran-and-iran-prepares-for-khamenei-farewell\/59383\/","title":{"rendered":"Middle East Crisis: Dubai Markets Plunge 5% as Israel Strikes Tehran and Iran Prepares for Khamenei Farewell"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Dubai\u2019s main stock index plummeted 5% at the open<\/strong> on Wednesday as regional instability reached a fever pitch following reports of fresh Israeli airstrikes on Tehran.<\/li>\n<li><strong>Israel\u2019s military confirmed a new wave of strikes<\/strong> targeting the Iranian regime\u2019s air capabilities, internal security command centers, and the <strong>Basij militia<\/strong>.<\/li>\n<li><strong>Iranian state media announced farewell ceremonies<\/strong> for late Supreme Leader <strong>Ayatollah Ali Khamenei<\/strong> will begin Wednesday night at 22:00 at the Imam Khomeini Musallah in Tehran.<\/li>\n<li><strong>U.S. military facilities in Erbil were targeted by two drones<\/strong>, as sources indicate the U.S. and Kurdish forces are discussing potential expanded military operations in Iran.<\/li>\n<li><strong>Global bond markets are under pressure<\/strong>, with the <strong>Japanese 30-Year Government Bond yield rising to 3.365%<\/strong>, a significant 3.5 basis point jump reflecting safe-haven shifts and inflation fears.<\/li>\n<\/ul>\n<h2>Regional Markets and Geopolitical Escalation<\/h2>\n<p>The <strong>Dubai Financial Market (<a href=\"\/stock\/DFM\">DFM<\/a>)<\/strong> saw its main index drop <strong>4.7% to 5%<\/strong> immediately after opening on Wednesday. The sell-off was triggered by the <strong>Israel Defense Forces (IDF)<\/strong> announcing a series of airstrikes over Tehran, which targeted dozens of headquarters and command centers tied to the <strong>Basij militia<\/strong> and the Iranian regime&#39;s air defense systems.<\/p>\n<p>In a separate maritime incident, an <strong>Iranian naval ship foundered<\/strong> near Sri Lanka after sending a distress signal. The <strong>Sri Lankan Navy<\/strong> is currently conducting a rescue operation for the crew, according to a defense spokesperson, adding further strain to Iranian naval assets already under pressure from recent regional conflicts.<\/p>\n<h2>Military Developments and U.S. Involvement<\/h2>\n<p>Tensions in Iraq surged as <strong>two drones attacked a U.S. military facility and a hotel in Erbil<\/strong>. Sources suggest that the <strong>U.S. government<\/strong> is in active discussions with Kurdish leadership regarding potential military operations within Iran, following the death of the Supreme Leader.<\/p>\n<p>The <strong>U.S. State Department<\/strong> has responded to the volatility by authorizing the departure of non-emergency staff from <strong>Pakistan<\/strong> and issuing a fresh travel advisory for <strong>Cyprus<\/strong>. These moves signal a broadening concern that the conflict between Israel and Iran could spill over into a wider regional war involving multiple neighboring states.<\/p>\n<h2>Energy and Global Finance<\/h2>\n<p>Despite the regional chaos, <strong>KazTransOil (<a href=\"\/stock\/KZTO\">KZTO<\/a>)<\/strong> reported steady energy exports for the month of February. Kazakhstan delivered <strong>375,000 tons of oil<\/strong> to the <strong>Caspian Pipeline Consortium (CPC)<\/strong> and sent <strong>210,000 tons to Germany<\/strong>, maintaining critical supply lines to Europe amidst the geopolitical uncertainty.<\/p>\n<p>In the fixed-income market, the <strong>Japanese 30-Year Government Bond (<a href=\"\/stock\/JP30Y\">JP30Y<\/a>)<\/strong> yield climbed to <strong>3.365%<\/strong>. This rise of <strong>3.5 basis points<\/strong> reflects a global trend of rising yields as investors recalibrate risk premiums in the wake of the Iranian leadership transition and the ongoing military campaign in the Middle East.<\/p>\n<h2>Political and Domestic Updates<\/h2>\n<p>In the United States, political attention turned to the <strong>Texas 23rd Congressional District<\/strong>, where the <strong>Associated Press<\/strong> reported that incumbent <strong>Tony Gonzales<\/strong> and challenger <strong>Brandon Herrera<\/strong> are headed for a runoff in the GOP primary. The race is being closely watched as a bellwether for the Republican party&#39;s internal direction during a period of intense international crisis.<\/p>\n<p>Back in Tehran, the <strong>Islamic Revolutionary Guard Corps (IRGC)<\/strong> is preparing for a massive public farewell for <strong>Khamenei<\/strong>. The ceremony at the <strong>Imam Khomeini Musallah<\/strong> is expected to draw millions, even as Israeli planes continue to strike military targets within the capital city.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Dubai\u2019s main stock index plummeted 5% at the open on Wednesday as regional instability reached a fever pitch 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