President Biden’s administration has taken the first steps to try and revive the Iran nuclear deal and, while there remain major hurdles, this could put downward pressure on oil prices. This would add to the reasons to expect fiscal policy in the Gulf to remain tight. In Kuwait, a draft law that would allow the government to lean on the sovereign wealth fund to finance the budget deficit may push parliament to pass a long-awaited debt law. Finally, Lebanon’s misuse of COVID-19 vaccines has worsened relations with multilateral institutions and could ultimately increase the pain being inflicted by the country’s crisis.
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