Stephen Carroll

Executives and traders have flocked to the Gulf states in recent years and now they're reckoning with their proximity to danger.

Air defence systems have intercepted projectiles over the skylines of Dubai and Abu Dhabi over the weekend as Iran lashed out at Western allies.

In response, the United Arab Emirates has closed its embassy in Tehran and withdrawn its diplomatic mission.

Bloomberg's Abir Abu Omar has more.

So those are our top stories for you this morning.

In terms of the market reaction, Brent crude opened in London early this morning by surging 13%.

Currently, Brent crude futures up by 7.2%, $78.12 the barrel.

We have also seen U.S.

stock futures jump this morning.

Stock futures slumping 1% for the S&P 500.

US stocks 50 futures also down by 1.7%.

The MSCI Asia-Pacific Index down by 1.6% given this major conflict in the Middle East.

In terms of energy, shipping, defence stocks, they've all jumped higher.

Airline and hotel stocks have dropped.

The Bloomberg Dollar Spot Index is up by 0.4% and safe haven assets including gold and silver have also surged.

Bullion currently

is up by 1.9%.

And will it also mean a surge in treasuries?

10-year treasury yields this morning at 3.96%, up by one and a half basis points.

Those are the markets.