Middle East Daily

Latest edition · September 2, 2026

Middle East

Escalating US-Iran conflict has propelled Brent crude toward USD 96/b, stoking inflation fears and lifting US Treasury yields, which in turn pushed gold lower and GCC bonds into a repricing. Concurrently, the Bank of Israel cut interest rates by 25bps to 3.25%, while Turkey's manufacturing PMI remained in contraction at 48.1.

MUFG's Middle East Daily highlights escalating regional tensions as US-Iran strikes disrupt energy transit through the Strait of Hormuz, driving Brent crude toward USD 96/b and WTI to USD 91/b. High energy prices and hawkish Fed messaging pushed the 30-year US Treasury yield above 5.28%, pressuring gold down to USD 4,305/oz and prompting net selling across GCC debt markets. On the regional macro front, the Bank of Israel reduced its policy rate by 25bps to 3.25% amid subdued inflation, while Turkey's manufacturing PMI recorded a slight rise to 48.1, remaining in contraction for a 29th consecutive month and backing further CBRT easing.

Key takeaways from the latest edition

• 1.Oil prices surged for a third session (Brent near USD 96/b) amid renewed US-Iran hostilities and Hormuz transit risks, while crude flows through the strait remain curtailed around 8mb/d.
• 2.Gold declined to around USD 4,305/oz as surging energy prices and hawkish Fed rate hike expectations drove US Treasury yields higher, with the 30-year yield climbing above 5.28%.
• 3.The Bank of Israel cut its policy rate by 25bps to 3.25% on subdued inflation pressures and soft underlying economic activity, with potential for another 25bp cut by year-end.

What this series covers

• COMMODITIES / ENERGY
• BOI CUTS RATES AS INLATION PRESSURES REMAIN SUBDUED
• MIDDLE EAST – CREDIT TRADING
• MIDDLE EAST – MACRO / MARKETS
• CALENDAR – DATA / EVENTS / MEETINGS
• MARKET INDICATORS
• DISCLAIMER
• CERTIFICATION
• LEGAL ENTITIES AND BRANCHES
• GENERAL DISCLAIMERS
• COUNTRY AND REGION SPECIFIC DISCLAIMERS

Edition archive

• Middle East

  September 2, 2026

• Middle East

  September 1, 2026

• Middle East

  August 17, 2026

• Middle East-4

  July 30, 2026

• Middle East-3

  July 29, 2026

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