FT News Briefing Gulf states caught in the middle of US-Iran conflict
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Mar 3, 2026 
Ahmed Al-Omran, Saudi Arabia correspondent covering Gulf politics and regional security, and Claire Jones, U.S. economics editor focused on energy and inflation. They discuss Iran’s strikes pressuring Gulf states and disrupting travel and finance. They also explore oil disruptions through the Strait of Hormuz and how surging prices could reshape U.S. inflation and monetary policy.
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Markets Favored Gold Over Bonds During Iran Strikes
- Investors fled to gold and the US dollar as safe havens while avoiding government bonds amid the Middle East strikes.
- Gold jumped as much as 2.5% and MSCI emerging market equities fell nearly 2%, showing preference for hard assets over bonds.
Strait Of Hormuz Disruptions Threaten Inflation
- Disruption in the Strait of Hormuz halted oil flows and pushed prices sharply higher, threatening US affordability politics.
- A sustained rise to $100 a barrel would chiefly raise inflation and hit consumer prices at the pump.
Oil Shock Could Freeze Fed Rate Cuts
- A sustained oil price shock would complicate the Fed's plans by raising inflation and making rate cuts less likely in the short term.
- Claire Jones warns it risks stagflation: higher prices and lower growth forcing tricky policy trade-offs.