【Iran Crisis】HSBC, Standard Chartered, and several other banks reportedly temporarily suspend Persian Gulf transactions; some banks arrange Dubai staff to work from home.

SocialAnxietyStaker · 2026-03-12T08:16:06+00:00

The outbreak of military conflict between the US, Israel, and Iran has led to tense conditions in the Persian Gulf, causing many global banks such as HSBC and Standard Chartered to temporarily suspend transactions with Middle Eastern clients and reassess risks. Some banks are considering shifting to more stable markets. Citi and Standard Chartered have already begun withdrawing from their Dubai offices and are requiring employees to work from home, indicating that financial activities in the Middle East are severely impacted.

SocialAnxietyStaker

2026-03-12 08:16:06

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The outbreak of military conflict between Israel and Iran has heightened tensions in the Persian Gulf, shaking market enthusiasm for the Middle East. Bloomberg, citing sources, revealed that several major global banks, including HSBC (00005) and Standard Chartered (02888), which are key players in the Asian loan market, have notified some Middle Eastern clients that certain transactions involving Asian balance sheets will need to be temporarily halted. Spokespersons for HSBC and Standard Chartered declined to comment.

Banks from Japan, Greater China, and Singapore are also reportedly assessing their pending projects and existing risk exposures. Some are considering shifting their focus to other markets, including South Korea and Australia, where risks are currently more stable. Reports also quoted sources indicating that a major Singaporean bank has put on hold its expansion plans in the Middle East scheduled for 2026. The bank’s Hong Kong team visited Dubai for client meetings in February, but they have now been instructed to pause related discussions.

Bloomberg reported that during the Asia-Pacific Loan Market Association (APLMA) conference held in Hong Kong this week, the Middle East conflict became a key topic of private discussions. Several bankers privately stated that they are reassessing their expansion plans in the Persian Gulf and carefully weighing the risks triggered by the conflict.

Citi and Standard Chartered reportedly evacuate Dubai offices

Additionally, Reuters on Wednesday (11th) cited sources saying that Citigroup (NYSE: C) and Standard Chartered have begun evacuating their Dubai offices, instructing employees to work from home. Citigroup reportedly sent a memo to staff, requiring them to vacate offices at Dubai International Financial Centre (DIFC) and Dubai Utdmetah District, and informing them that remote work will continue until further notice. HSBC is also said to have notified clients that all branches within Qatar have been closed until further notice.

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