Akintunde Oyedokun
Research Analyst
Oil prices rose about 3% on Thursday after reports that Iran refused to send its near-weapons-grade uranium abroad, dimming hopes of a quick resolution to tensions with the U.S. and Israel.
Brent crude climbed to $108.09 per barrel, while U.S. WTI crude rose to $101.78.
Concerns over supply disruptions through the Strait of Hormuz and falling U.S. oil inventories also supported prices.
Euro Zone Economy Contracts As Inflation Pressures Mount
Euro zone business activity contracted further in May as rising living costs and war-related disruptions weakened demand and increased recession fears.
S&P Global’s Composite PMI fell to 47.5 from 48.8 in April, its lowest since October 2023, while companies continued cutting jobs amid persistent inflation pressures.
The weak data has strengthened expectations that the European Central Bank may still raise interest rates in June to tackle inflation.
U.S. Jobless Claims Fall Amid Fed’s Focus On Rising Inflation
U.S. jobless claims fell to 209,000 last week, signaling a resilient labor market despite rising inflation pressures from the Iran conflict.
Higher oil prices and mortgage rates continue to strain the housing sector, while the Federal Reserve is expected to keep interest rates steady.
Housing starts and building permits also declined, reflecting weaker construction activity.
Egypt Keeps Interest Rates Unchanged Despite Inflation Risks
Egypt’s central bank retained its key interest rates on Thursday, keeping the deposit rate at 19% and lending rate at 20% amid inflation concerns and regional tensions.
The bank said economic growth slowed to 5% in Q1 2026, while inflation eased slightly to 14.9% in April, still above its target range. Core inflation also dipped to 13.8% from 14% in March.
Nigerian Central Bank Allots N829bn Amid Strong Demand for One-Year T-Bills
The CBN allotted N829.32 billion at its May 20, 2026 Treasury Bills auction, with demand heavily skewed toward the 364-day tenor.
Total subscriptions reached N1.99 trillion against a N650 billion offer.
The one-year bill led with N1.84 trillion in subscriptions and N683.29 billion allotted, while shorter tenors saw weaker demand.
Stop rates stayed broadly stable across maturities, reflecting steady yields and strong investor appetite for longer-dated government securities.
