Overview:
Regional stock markets posted gains on Sunday despite ongoing tensions in the Middle East, with most Gulf exchanges rising despite stalled negotiations over Iran-related conflicts and reduced shipping traffic through the Strait of Hormuz. Gold prices edged higher at the start of Asian trading Monday, supported by dollar weakness and recent economic data that tempered expectations for interest rate increases. Oil extended gains as supply concerns persist from maritime disruptions.
Details:
Oil prices climbed as Washington-Tehran negotiations remain deadlocked and vessel movements through the Strait of Hormuz continue to face constraints. Iraqi crude exports reached 2.8 million barrels daily for the first time since the regional conflict intensified, demonstrating resilience despite the transit bottleneck. Brent crude jumped to USD 88.52 per barrel as the United States signaled intent to expand economic pressure on Iran through additional sanctions channels. The supply situation reflects broader geopolitical risks that continue to support energy valuations across markets.
Gold prices moved incrementally higher in Asian markets, with international banks maintaining elevated forecasts for the precious metal through year-end 2026. Demand drivers include sustained geopolitical tensions, increased central bank purchasing, and investment portfolio reallocation amid currency volatility. The weakening dollar supported near-term price action, though traders await clarity on monetary policy directions from major central banks.
Elsewhere in the region, Dubai's urban expansion drove a 12 percent profit increase for parking operator Barkin in the second quarter. The United Arab Emirates reported 38 new comprehensive economic partnership agreements across Asian, African, and European markets, alongside record growth in non-oil trade. Egypt's International Monetary Fund program reviews are progressing, with potential disbursements of USD 2.35 billion possible by mid-November. Jordan's inflation moderated to 2.7 percent in July from 2.79 percent in June, aided by declining food prices.
Outlook:
Investors are monitoring developments in Iran sanctions policy and their impact on global oil supply balances. The trajectory of regional shipping disruptions and their influence on energy price premiums remain focal points for portfolio positioning.