The dollar and MENA, US-Iran tensions, Saudi project delays

This year's dollar rout has taken Gulf currencies down too, but the impact on inflation is likely to be small - and inflation is very low in any case. Elsewhere, Egypt stands to be a beneficiary from a weaker dollar (and stronger pound) which will dampen inflation pressures and reduce the risks stemming from foreign currency debt. Meanwhile US-Iran tensions are rising and the threat of military action has increased, posing a risk to oil markets and the stability of the current Iranian regime.