The Horizons Middle East & Africa program on August 6, 2026, highlighted several key developments. Asian stocks saw an advance, driven by investor optimism following signs of progress in diplomatic talks between the US and Iran regarding a peace deal. Mediators Qatar and Pakistan confirmed that the parties agreed on a roadmap for a final deal within 60 days, establishing a communication line to prevent incidents.
The program also reported on the business sector, noting that BCG was among the biggest losers from Saudi Arabia's pullback on consultant engagements. In African politics, Ethiopia's Prime Minister Abiy Ahmed cemented his grip on power as his party comfortably won the recent election. Concerns were also raised about the UK political landscape, with mention of Labour leader Keir Starmer being on the brink with resignation.
Regarding market specifics, the pound sterling was discussed with analysts noting a modest short position. There are lingering concerns about the UK's fiscal policy, with markets awaiting information on the fiscal position until the autumn. The market is pricing in an eventual shift in fiscal policy, and expectations are that future spending and taxes will significantly influence Sterling's trajectory. Oil prices were also a focus; while currently lower, there's a possibility they could sink towards $70, influenced by the US-Iran talks, which could reduce approximately 1-2% of global seaborne supply if a deal is reached.
