Emerging-market benchmarks for stocks and currencies experienced a modest increase, with the MSCI Emerging Markets Index rising by 0.1%. This movement was influenced by Iran's new proposal to the US regarding the Strait of Hormuz, which led to a 4.4% decline in crude oil prices. The United Arab Emirates stocks, particularly First Abu Dhabi Bank PJSC and ADNOC Drilling Co., were significant contributors to the gains. Despite thin trading conditions due to holiday closures in many regions, emerging-market assets are navigating a week filled with volatility driven by geopolitical tensions and inflation concerns. Analysts remain optimistic, forecasting a 22% increase in the MSCI index over the next 12 months, buoyed by strong earnings momentum. Currency markets also saw positive movements, with the Hungarian forint gaining 0.3% and the Polish zloty rising 0.2% against the dollar. However, Barclays strategists have advised caution regarding the Turkish lira due to potential widening of Turkey's current account deficit linked to rising oil prices.