Peace deal unlocks insurance for Gulf transit hubs
The Australian government is expected to downgrade its travel warnings for Dubai, Abu Dhabi, and Doha as early as Wednesday, removing a major barrier for Australians heading to Europe this summer.
Sources say the Department of Foreign Affairs and Trade will lower the United Arab Emirates and Qatar from Level 4 (“Do Not Travel”) to Level 3 (“Reconsider your need to travel”). The change follows a signed agreement between the US and Iran to end months of conflict in the Gulf.
At Level 4, almost all insurers refused to issue policies for anyone flying via the region. That left thousands of travellers either stuck or forced to take longer, more expensive routes. The new Level 3 warning means insurers will likely cover transit through the hubs again.
Industry says warning should have been dropped weeks ago
“It should've been done weeks ago,” said Cinzia Burnes, a board member of the Australian Travel Industry Association and an executive director with Helloworld. She noted Australia was one of the last countries to keep the Level 4 warning in place.
“There have already been thousands of people transiting through Dubai and Abu Dhabi anyway because the risk is very limited,” Burnes said. She added that once the restriction lifts, “insurers will be willing to cover travel through the hubs. Such a change will definitely motivate people who had been hesitating to book.”
The war had heavily disrupted travel for hundreds of thousands of passengers. Airlines rerouted flights, cancelled trips, and bypassed the region entirely. Forward bookings collapsed, and international tour operators took a hit.
The conflict also damaged the reputation of Dubai, Abu Dhabi, and Doha — hubs that had long been marketed to Australians as safe, stable transit points. Drone strikes repeatedly targeted airports, hotels, and civilian infrastructure, forcing airspace closures.
Peace deal signed but details still vague
US President Donald Trump confirmed on Monday that a preliminary peace agreement had been signed. But the details haven't been made public, many crucial points have been pushed to future negotiations, and Israel’s stance on the pact remains unclear.
Emirates operates the highest volume of daily flights connecting Sydney, Melbourne, Brisbane, and Perth to Dubai. Virgin Australia’s partner Qatar Airways routes heavily through Doha.
Brett Mitchell, managing director for ANZ at Intrepid Travel, welcomed the de-escalation. “Any move towards peace is good news for the world,” he said. He also urged that official travel advice “continue to reflect the situation on the ground, including for major transit hubs.”
A DFAT spokesperson said the department keeps all Smartraveller advisories under review and regularly assesses risks to Australians overseas. They urged travellers to secure appropriate insurance and monitor official advice.
For now, the big winners are Emirates, Etihad, and Qatar Airways — and the thousands of Australians who have been waiting to book their summer holidays.