Qatar closes airspace as region braces for Iran response
Qatar shut down its airspace minutes after markets in London closed, with City analysts fearing the conflict involving Iran, Israel and the US could yet escalate further.
The UK government followed the US in telling its British nationals in the country to take shelter until further notice.
The US said the warning was made out of an “abundance of caution” as Qatari officials played down the severity of threats faced by residents and visitors.
The closure of the airspace comes amid reports that Iran could respond to US attacks on nuclear sites on Sunday by targeting American soldiers based in the Middle East,
Foreign secretary David Lammy revealed earlier on Monday that an RAF flight had successively evacuated British citizens from Israel and taken them to Cyprus, with around 4,000 nationals registered for flights.
He also said that one UK national had so far been injured in Israel during an exchange in strikes with Iran over the last week and a half.
Qatar has one of the biggest US military bases in the region, with about 8,000 American soldiers based at Al Udeid Air Base, which is in the desert outside Doha.
The airbase was under threat of an Iranian missile attack, the BBC separately reported.
Markets ‘wait-and-see’
Investors appear to be holding their never amid the escalating conflict between Iran and Israel.
Brent crude oil prices fell slightly at 5pm readings, which was just a few hours after Trump called on investors to stop inflating prices.
AJ Bell’s head of financial analysis Danni Hewson said investors were not jumping at news developments and instead looked to lie low.
“It’s at times like these that investors must wish they had some kind of crystal ball to gaze into, but in the absence of such a magical mechanism a ‘wait and see’ approach could be the most logical choice,” Hewson said.
“Brent crude fell back from a five year high, gold nudged up and though the dollar held firm it still seems to be out of favour as a traditional safe haven asset.
“Markets were muted as investors waited for Iran’s response to America’s military move, but so far it seems most aren’t ready to price in a full-scale conflict.
Tickmill Group partner Patrick Munnelly said: “UK stocks began the week on a dull note as investors searched for indications of intensification in the ongoing Middle East conflict.
“Economic data indicated a modest growth in British business activity during June, although concerns lingered due to the ongoing conflict in the Middle East.
“Meanwhile, Federal Reserve Chair Jerome Powell is expected to testify before Congress on Tuesday and Wednesday. Traders will closely monitor his insights regarding the economy and interest rates.”