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Here's your morning brief for Tuesday, March 3rd. I'm Daniel Bach for the Wall Street Journal.

The U.S. is evacuating a number of its diplomatic sites across the Middle East this morning

after its embassy in Saudi Arabia was hit by drones. We report there were no casualties in that attack.

Still, the State Department is closing the U.S. Embassy in Kuwait and ordering non-emergency personnel

and their families to leave the United Arab Emirates, Bahrain, Iraq, Jordan, Kuwait, and Qatar.

The U.S. Embassy in Abu Dhabi also warned there could be militant attacks in the UAE.

The first commercial flights have started taking off from Dubai, even as airspace remains shot in large parts of the Middle East.

Services are limited, with disruption expected to last until the conflict ends.

So far, more than 12,000 flights have been cancelled, affecting more than 1.5 million passengers.

Meanwhile, Amazon said it expected extended service outages following drone

attacks on three of its data centers in the Middle East. Two facilities in the United Arab

Emirates took direct hits, while a third in Bahrain sustained damage from a nearby strike.

And government bonds are selling off as investors fear the Middle East conflict will drive up oil prices, increase costs for transport, shipping, and energy.

That would fuel higher inflation across the board, potentially forcing central banks to respond with rapid interest rate hikes.

Concerns about the economic impact of the conflict are also weighing on stock markets this morning,

with Asian and European

shares slipping and U.S. stock futures pointing to a lower open. And we have a lot more coverage

of the day's news on the WS.J's What's News podcast? You can add it to your playlist on your

smart speaker or listen and subscribe wherever you get your podcasts.