There are new warnings that the conflict in the Middle East is set to have far reaching implications for businesses across the world.

Integrated legal and business services provider DWF has published a new report assessing the risks facing businesses in all industries due to the conflict in the Middle East.

The report, Conflict without borders and the illusion of distance, examining both the immediate and long-term impacts of geopolitical instability and how these are reshaping the risk landscape for organisations operating in global markets.

The report highlighted how conflict in one region can create far-reaching consequences, requiring businesses to reassess resilience across contracts, operations and supply chains.

Its key themes include:

• Interconnected global risk: How geopolitical instability can rapidly impact supply chains, operations and financial exposure across borders, even for businesses not directly operating in the region.
• Insurance and contractual uncertainty: The growing complexity around war classifications, force majeure provisions and policy coverage as organisations navigate evolving legal and regulatory frameworks.
• Sanctions and regulatory divergence: The challenges created by differing approaches across jurisdictions, increasing compliance risk for organisations operating internationally.
• Emerging digital and operational threats: The rise in cyber risk, fraud, workforce disruption and supply chain instability driven by modern conflict dynamics.

Commenting on the report, David Abbott, managing partner for insurance services and head of global risks at DWF, said: “Much of the Middle East remains open for business – but that doesn’t mean business is operating in a normal risk environment. The real issue isn’t whether conflict exists. It’s whether your contracts, insurance and operations are built for what happens if it spreads or happens again.

“Even when an agreement between opposing sides is reached, the return to ‘normality’ will take time, and there is a strong chance that the risk landscape will have permanently changed.”

Victoria Clucas, partner and insurance commercial director for MENA and APAC, added: “Even where a resolution is reached, the return to ‘normality’ will take time, and the risk landscape may be permanently changed. Organisations need to take a clear-eyed view of how they prepare for and respond to these evolving risks.”

“Even when an agreement between opposing sides is reached, the return to ‘normality’ will take time, and there is a strong chance that the risk landscape will have permanently changed.”