Sign in Subscribe
Iranian foreign relations

Gulf Region Companies Prepare for Potential Israel-Iran Conflict Spillover

Strategic Insights

— 2 min read

Risk advisory groups have witnessed a "sharp increase" in inquiries from companies in the Gulf region as they prepare contingency plans and activate crisis teams in anticipation of a potential escalation of the Israel-Iran conflict. Gulf monarchies have been working to maintain good relations with Tehran, but the region's hosting of US military bases and energy infrastructure makes it a potential target for Iranian retaliation. Companies are taking steps to ensure business continuity and staff safety, including evacuating staff from Israel and considering alternative logistics strategies in the event of a closure of the Strait of Hormuz.

Key Takeaways:

  • Control Risks and Kroll have seen a "sharp increase" in inquiries from companies in the Gulf region as they prepare contingency plans and activate crisis teams in anticipation of a potential escalation of the Israel-Iran conflict.
  • Gulf monarchies have been working to maintain good relations with Tehran, but the region's hosting of US military bases and energy infrastructure makes it a potential target for Iranian retaliation.
  • Companies are taking steps to ensure business continuity and staff safety, including evacuating staff from Israel and considering alternative logistics strategies in the event of a closure of the Strait of Hormuz.
  • Renault has instructed its 70 employees in Tehran to work from home and is closely monitoring the situation.
  • International SOS has assisted companies in evacuating staff from Israel and has helped with overland evacuations from Iran.
  • Crisis24, which owns the OnSolve security monitoring app, has assisted on 40 individual company evacuations from Israel so far.
  • Some businesses are turning to technology to reassure employees and keep them informed, such as installing emergency notifications systems on staff mobile phones.
  • Control Risks is engaged in crisis management planning and table-top exercises for several companies, while others have activated crisis teams to keep management and employees informed.

Statistics:

  • London-based Risk advisory groups Control Risks and Kroll have seen a significant increase in inquiries from companies in the Gulf region.
  • Crisis24 has assisted on 40 individual company evacuations from Israel so far.
  • One-third of the world's seaborne crude transits through the Strait of Hormuz, with gas exports from Qatar and the UAE also passing through the narrow waterway controlled by Iran and Oman.
  • The UK's Maritime Trade Operations office has reported high levels of electronic interference across the Gulf region, disrupting vessels' position reporting systems.
  • DP World, which runs the region's largest shipping hub at the port of Jebel Ali in Dubai, reports that its operations are currently running normally, but the company is preparing for alternative logistics strategies in the event of a closure of the Strait of Hormuz.

Sources:

  • Financial Times
  • Control Risks
  • Kroll
  • International SOS
  • Crisis24
  • Renault
  • DP World

Read more