BUSINESS

Online Sellers Brace as Gulf Logistics Grinds to Near Halt After U.S.-Israel Strikes

Published: Mar. 3, 2026 6:51 p.m. GMT+8

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Cargo ships anchored in Dubai, United Arab Emirates, on March 2. Photo: VCG

The escalating military confrontation among the U.S., Israel and Iran has disrupted Middle Eastern logistics, dealing a blow to cross-border e-commerce during Ramadan — one of the region’s busiest shopping months.

Following U.S.-Israel military strikes on Saturday, traffic through the Strait of Hormuz, one of the world’s most critical maritime chokepoints, has nearly halted, while airspace closures in the Middle East have led to thousands of canceled flights. The disruption is already complicating inventory replenishment for cross-border sellers serving Gulf consumers, raising the prospect of stockouts if hostilities persist.

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U.S.-Israel-Iran military conflict has disrupted Middle East logistics, halting Strait of Hormuz traffic and causing thousands of flight cancellations during Ramadan.
E-commerce and logistics firms, including FedEx, UPS, and Chinese companies, face service suspensions and operational challenges in Gulf countries.
Merchants warn of potential inventory shortages if disruptions persist, especially during Ramadan, a key shopping period in the region.

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Who’s Who

Amazon: An Amazon seller, who also uses the local platform Noon, stocked overseas warehouses according to their usual Ramadan strategy. Currently, sales and fulfillment for this merchant remain normal. However, if the conflict prolongs and replenishment channels are cut off, there's a risk of stockouts.

FedEx Corp.: FedEx Corp. suspended pickup and delivery services in Bahrain, Kuwait, Iraq, Qatar, and the United Arab Emirates. This action was taken due to airspace closures and concerns for employee safety amidst escalating military confrontation in the Middle East. The suspension impacts cross-border e-commerce during Ramadan.

United Parcel Service Inc.: United Parcel Service Inc. has also issued a warning about possible service interruptions due to the escalating military confrontation in the Middle East. The company stated that it is "closely monitoring the situation...and using established contingency plans to manage our operations safely and efficiently."

J&T Express Co. Ltd.: J&T Express Co. Ltd., a Chinese logistics company, experienced disruptions to its operations in the UAE. This was due to authorities encouraging remote work and limiting outdoor activities from Sunday to Tuesday, in response to the escalating situation in the Middle East.

iMile Delivery Services LLC: iMile Delivery Services LLC, a Chinese logistics company, experienced disruptions in their operations in the Middle East due to recent military conflicts. However, they were able to resume normal warehousing and delivery services across the UAE by Tuesday.

Keeta: Keeta is a food delivery brand owned by Meituan. The company is actively monitoring the situation in the Middle East and maintaining contact with local authorities. They plan to follow government directives and may temporarily restrict or stop services in specific areas to ensure community safety.

Meituan: Meituan's food delivery brand, Keeta, is closely monitoring the situation in the Middle East due to recent military confrontations. Keeta is in contact with local authorities and will follow government directives, even temporarily restricting or stopping services if needed to ensure community safety.

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