Akintunde Oyedokun
Research Analyst
Crude prices fell Friday as new U.S. sanctions on Iran signaled a possible turn toward diplomacy, easing fears of wider conflict in the Middle East. Brent settled down $1.84 at $77.01, and U.S. July crude slipped to $74.93.
The drop followed a volatile week marked by Israeli strikes on Iran and retaliatory missile attacks. Yet the absence of supply disruptions—despite threats to key routes like the Strait of Hormuz—kept oil from spiking further.
Weekly gains remained solid: Brent rose 3.6%, U.S. crude 2.7%. Meanwhile, U.S. energy firms cut rigs for the eighth straight week, pointing to a slowdown in future output.
UK Retail Sales Plunge 2.7% In May, Undermining Economic Momentum
UK retail sales dropped by 2.7% in May, the steepest monthly fall since December 2023, as demand weakened after strong April spending on food, clothes, and home improvements. Sales were also 1.3% lower than a year earlier, missing forecasts for annual growth. The decline was driven by reduced spending on food, alcohol, clothing, and DIY, with retailers reporting lower footfall. The data, released alongside a higher-than-expected £17.7 billion budget deficit, pushed the pound lower. Despite strong Q1 GDP growth, April saw a contraction, and recent mixed retail updates suggest consumers remain cautious.
Canada’s Retail Sales Rise 0.3% In April But Miss Forecasts, May Drop Expected
Canada’s retail sales rose by 0.3% to C$70.11 billion in April, slower than March’s 0.8% growth and below the expected 0.5%, Statistics Canada reported. Gains were recorded in six of nine subsectors, led by a 1.9% increase in auto and parts dealers, while gasoline and clothing sales fell sharply. Excluding autos, sales declined 0.3%. Despite April’s rise, a 1.1% drop is projected for May, signaling potential economic stagnation in Q2 as earlier tariff-driven consumer spending wanes. Trade tensions with the U.S. continued to weigh on all retail sectors.
Morocco’s Inflation Eases to 0.4% in May As Food Price Growth Slows
Morocco’s annual inflation rate, based on the consumer price index, declined to 0.4% in May from 0.7% in April, according to the country’s statistics agency on Friday.
Food prices, which remain the key driver of inflation, rose by 0.5% year-on-year, while non-food prices saw a 0.3% increase.
Core inflation—which strips out volatile items like food—rose 1.1% from the previous year and remained unchanged compared to the previous month.
Insecurity Pushes Up Food Prices by 29% In Nigeria
Farm produce prices in Nigeria went up by 28.98% from January to May 2025, according to the National Bureau of Statistics. The biggest jump happened in May due to rising insecurity, which is making it harder for farmers to grow and transport food, especially in major farming areas like Benue.
Imported food prices, on the other hand, stayed mostly steady during this time.
Even though overall inflation dropped slightly to 22.97% in May, food inflation is still high. Monthly food prices also went up, with items like yam, maize flour, and pepper becoming more costly.
The rising gap between local and imported food prices shows the urgent need to fix insecurity and support farmers to avoid a deeper food crisis.
