SOOJIN KIM
Research Analyst
DIFC Branch – Dubai
T: +44(4)387 5031
E: soojin.kim@ae.mufg.jp

MUFG Bank, Ltd. and MUFG Securities plc

A member of MUFG, a global financial group

Middle East Daily

COMMODITIES / ENERGY

Oil rises as US reviews Iran proposal while Hormuz remains shut. Oil prices edged higher, with Brent trading near USD109/b and WTI above USD97/b, as markets assessed Iran’s latest proposal to revive peace talks while disruptions in the Strait of Hormuz continued to constrain global energy supplies. President Trump held discussions with his national security team on Iran’s proposal but maintained key demands, including preventing Iran from developing nuclear weapons. Although a ceasefire has largely held since early April, dual US and Iranian blockades have reduced shipping crude, natural gas, and refined product flows while fuelling inflation concerns. Iran has reportedly tied a broader peace deal to the removal of the US naval blockade and guarantees against future attacks, but US remains skeptical. Meanwhile, Iran is facing mounting storage constraints and may be forced to cut production further, reinforcing concerns that supply disruptions could persist.

Gold steady as markets assesses Iran peace proposal and rate risks. Gold prices were little changed near USD4,695/oz as investors weighed renewed diplomatic efforts between the US and Iran against persistent inflation risks stemming from the prolonged conflict. President Trump met with national security officials to review Iran’s latest proposal, which reportedly includes reopening the Strait of Hormuz in exchange for the US ending its naval blockade, while delaying broader nuclear negotiations. The continued disruption of oil, gas, and refined product flows through Hormuz has intensified global inflation concerns, increasing expectations that major central banks, including the Fed and ECB, may keep interest rates elevated for longer. That outlook continues to weigh on non-yielding gold, which remains down roughly 11% since the conflict began.

MIDDLE EAST - CREDIT TRADING

End of day comment – 27 April 2026. A stronger start to the week, especially in spread terms, but volumes remain very low. The difference to Thursday/ Friday was that ETFs today were on the buy side and the outflows from RM tapered down. The first bids to step up were in QATAR long end which remains stronger than ADGB long end, 49s and 50s were active closing +0.25pt/-5bp. Against this higher prices in ADGB long end found willing sellers, 54s closed unch/-2bp. Quasi sovgn names were broadly unch in cash prices and about 1/2bp tighter in spreads with underlying UST moves. Seen again some activity in QPETRO 41s and MUBAUH belly bonds from 33s to 35s. Fins were mostly static as well, one name which was stronger was QNBK with buyers in 30s closing +0.20pt/-5bp. The sentiment around corps remains subdued though, I had DPWDU 0.125/0.375pt lower today and +3/5bp given how much they depend on trade flowing through Hormuz. All said compared to other Mondays since the conflict started this was overall a strong start to the week. Reflecting the improved risk sentiment EBIUH announced they have mandated for a PNC6 AT1.  

MIDDLE EAST - MACRO / MARKETS

UAE launches USD272 million industrial resilience fund. The UAE has launched a USD272 million National Industrial Resilience Fund to strengthen domestic manufacturing, secure supply chains, and accelerate the use of artificial intelligence across production as part of its broader economic diversification strategy. Approved during a cabinet meeting chaired by Mohammed bin Rashid Al Maktoum, the initiative aims to localise more than 5,000 critical products, expand strategic reserves, and improve industrial risk management and forecasting capabilities. The move comes amid heightened regional tensions and follows Dubai’s recent financial support package aimed at easing economic pressures linked to the Iran war. The government also made the National In-Country Value Program mandatory across public entities and introduced policies to boost the presence of locally manufactured goods in retail and online markets. The initiative underscores the UAE’s push to build a more resilient, technology-driven industrial base while reducing reliance on hydrocarbons.

Oman signs USD520 million industrial deals to boost diversification. Oman has signed more than USD520 million in new investment agreements across its major economic zones, reinforcing its strategy to build an export-oriented industrial base and accelerate diversification under Vision 2040. Major projects include a roughly USD107 million steel manufacturing facility in Duqm that will use lower-carbon electric arc furnace technology and a USD91 million EV battery materials project in Salalah, strengthening Oman’s position in clean energy and electric vehicle supply chains. Khazaen also secured additional investments in construction materials and pharmaceuticals, while a separate memorandum outlines over USD285 million in future opportunities. The deals reflect growing confidence from both local and international investors, with total investments across Oman’s economic zones reaching around USD58 billion by the end of 2025, underscoring the country’s ambition to become a regional hub for advanced manufacturing, logistics, and high-value exports.