Iran’s ongoing conflict has grounded Middle East dreams for countless Asian holidaymakers and business professionals, who now seek refuge in closer, more affordable destinations like Thailand and Indonesia.
With jet fuel prices climbing 35% to $3.20 per gallon since late February according to the International Air Transport Association’s March 2026 report, airfares on long-haul routes have ballooned by as much as 50%.
This mirrors the airspace chaos from Russia’s 2022 invasion of Ukraine but strikes deeper at hubs like Dubai, where intermittent airport closures have cut visitor numbers by 40% year on year, Cirium data shows. More than 46,000 regional flights have been cancelled since the U.S.-Israel strikes on 28 February.
Travellers from Vietnam, for instance, face tickets costing $1,500 to $2,000 with stopovers, a direct fallout from the Iran war’s strain on fuel and security. Agencies like Safe Harbors report 20 to 30% more cancellations from Asian clients, often due to steep $450 non-refundable fees, with many redirecting to Singapore or intra-Asian spots.
Booking.com’s first-quarter 2026 figures confirm a 25% surge in Southeast Asia searches.
Business trips feel the pinch too. Perk travel data shows Europe-Asia voluntary cancellations doubling in early March as firms avoid risks.
Novo Nordisk executive Vincent Siow got stranded in Dubai on 28 February after his Copenhagen flight was axed, rerouted via a winding path through Doha and Riyadh. “We’ll still have meetings,” he said. “It’s just that we need to plan properly, try to avoid flying in that zone.”
Ferries to Batam from Singapore thrive despite surcharges, offering quick escapes that Jacqueline Tan, CEO of Singapore Cruise Centre, calls “a very quick gratification for a very short getaway. You don’t really have to think about it, and you’re really not spending that much.”