Gold and Silver Flows Disrupted as Iran Conflict Grounds Key Flight Routes

Gold and silver flows are disrupted by the ongoing Iran conflict, according to a report in the Financial Times. Over 11,000 flights have been cancelled in the region since Iran launched the retaliatory strike.

Dubai, one of the world’s most important bullion transit centers, has been particularly affected by these flight cancellations. Initially, the authorities completely grounded flights, but they are now resuming operations with a limited number of flights.

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How Cargo Disruptions and Grounded Flights Are Hitting Gold and Silver Flows

Dubai is a major gold supplier for countries like Switzerland, Hong Kong, and India, among others. In 2025, the UAE had over $100 billion in gold imports and a little under $80 billion in exports.

With widespread cargo disruptions amid the ongoing Iran conflict, shipments of gold and silver are grounded.

Many trading companies have confirmed that their shipments from Dubai are impacted. A few others who had Dubai as the transit hub are now looking for alternative hubs.

A source privy to the disruption to the gold and silver flow told Reuters,

“It looks like most if not all airlines have cancelled their flights, so not going to be any gold moving for a couple of days.”

Talking about the unfeasibility of alternative transport routes over flights, like moving gold overground, a source told Bloomberg,

“There are ways to manage the risk. What could technically go in one armored truck could go in three armored trucks. You may have an escort of armed guards.”

So, the added security risk and cost, along with other logistical and cross-border complications, make shipping gold by land largely unfeasible for traders.

Silver Prices Whipsaw as Iran Conflict Rattles Markets

Silver plunged over 10% on Tuesday, dropping to a low of $78.06, pressured by a strengthening dollar and inflation fears stemming from the conflict. The metal had touched $97 on Monday, its highest level since crashing from a record above $120 in late January. Analyst Ross Norman told Reuters the dollar is creating a “strong headwind to gold and particularly silver.” A partial recovery followed on Wednesday, with silver up over 2% as investors reassessed the safe-haven case amid reports U.S. military action against Iran could extend for a month or longer.

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It remains to be seen how the entire episode will affect long-term metal volatility. If the escalation continues, it could impact global supply, affecting the prices.

For now, investors are rushing to gold, with global gold funds recording $6.2 billion worth of inflows last week.