Akintunde Oyedokun
Research Analyst
Oil prices spiked on Friday after Israel and Iran exchanged air strikes, raising fears of supply disruptions across the Middle East. Brent crude settled at $74.23, up 7%, while WTI climbed 7.6% to $72.98.
The sharp rally—oil’s largest single-day gain since 2022—was driven by concerns that the conflict could impact exports from the region, particularly through the Strait of Hormuz, a key global oil transit route.
Although Iranian oil facilities remain operational, markets remain on edge as tensions escalate, with the risk of direct attacks on energy infrastructure threatening global supply stability.
German Inflation Slows To 2.1% In May, Confirming Easing Price Pressures
Germany’s annual inflation rate slowed to 2.1% in May, according to official data released by the Federal Statistics Office on Friday, confirming earlier estimates. This marks a slight decline from the 2.2% year-on-year increase recorded in April, based on the harmonised index of consumer prices (HICP) used for comparison across European Union countries. The data signals continued progress towards stabilising price growth in Europe’s largest economy.
U.S. Consumer Sentiment Climbs, But Global Tensions, Oil Surge Cloud Outlook
U.S. consumer sentiment rose in June to 60.5, its highest in six months, helped by reduced trade tensions with China and easing inflation fears. However, the gain was dampened by geopolitical risks after Israel’s strike on Iran sent oil prices soaring and rattled markets.
Despite the broad-based improvement in confidence, consumers remain wary of the economy’s direction, with concerns about rising gas prices and global instability likely to weigh on future expectations. The sentiment index, though improved, is still well below late 2024 levels.
South African Stocks Face Record Outflows As Investors Shun Market
Foreign investors have withdrawn $3.7 billion from South African equities since October—the largest and longest outflow streak in five years, says the Institute of International Finance. This sharp decline nearly doubles the combined outflows of 2023 and 2024.
Despite a strong 29% return in dollar terms this year, global investors remain cautious, citing weak economic fundamentals and sluggish growth. While other emerging markets saw renewed interest in May, South Africa continues to miss out, with inflows offset by consistent sell-offs on the Johannesburg Stock Exchange.
Nigerian Military Dismantles 21 Illegal Refineries, Arrests 23 In Niger Delta Operations
The Nigerian military has intensified its clampdown on oil theft, dismantling 21 illegal refineries and arresting 23 suspects in the Niger Delta over the past week. Troops recovered over 121,000 litres of stolen crude oil, refined products, weapons, and various equipment.
Maj.-Gen. Markus Kangye said troops also rescued a kidnapped victim and arrested several criminals during targeted operations in Imo, Delta, Rivers, and Bayelsa States.
This operation follows the Nigerian Navy’s recent destruction of eight illegal refining sites in Warri South, Delta State. The Defence Headquarters has called for citizens’ support in tackling insecurity and economic sabotage.
