Overview:

Lebanese depositors resumed bank branch actions this week as the parliamentary finance and budget committee met with Finance Minister Yassin Jaber and Central Bank Governor to coordinate payment of six salary installments and ease monetary pressures. Simultaneously, regional Gulf markets declined amid investor uncertainty over Iran-U.S. diplomatic talks, while oil prices rose on declining American crude inventories and supply concerns. Gold prices edged lower on dollar stability and anticipation of U.S. Federal Reserve policy decisions.

Details:

Depositor activism resumed at bank branches following a parliamentary finance committee session focused on coordinating salary payments through a joint effort between the Ministry of Finance and the Central Bank of Lebanon. Officials sought to reduce monetary pressures on the banking system at a time when liquidity constraints remain a core challenge for Lebanon's financial sector.

Across the region, most Gulf stock exchanges closed lower on Tuesday as investors monitored developments in Washington-Tehran negotiations. Market sentiment reflected caution regarding potential geopolitical escalation and its implications for energy markets and regional stability.

Crude oil prices advanced by more than two dollars per barrel in early Wednesday trading, driven by a 7.2 million barrel decline in U.S. crude inventories, which fell to 404.5 million barrels in the most recent weekly period. Gasoline and distillate inventories also rose in the United States. Gold prices retreated modestly as the U.S. dollar remained stable near monthly highs, sustained by capital flows toward safe-haven assets following renewed military escalation. Market participants await U.S. Federal Reserve monetary policy guidance.

Outlook:

Investors are monitoring Lebanon's ability to sustain coordinated central bank and Ministry of Finance actions to stabilize the banking system and manage deposit pressures. Regional market sensitivity to Iran-U.S. diplomatic outcomes remains heightened, with energy prices and regional equities vulnerable to any escalation or breakthrough in negotiations.