Akintunde Oyedokun
Research Analyst
Oil prices closed marginally higher on Monday as deadlocked U.S.-Iran nuclear negotiations raised doubts about a potential increase in Iranian oil exports. Brent crude settled at $65.54, up 13 cents, and U.S. WTI rose 20 cents to $62.69. Hopes for a deal faded after Iran stated talks would fail if the U.S. insists on halting uranium enrichment, undermining expectations for eased sanctions and boosted supply.
The modest gains came despite downward pressure from Moody’s downgrade of the U.S. sovereign credit rating, weak industrial output and retail sales data from China, and fresh U.S. tariff threats. Markets remain sensitive to geopolitical developments, with oil prices expected to remain volatile.
Moody’s Downgrade Sparks Debt Fears As Trump Tax Bill Advances
Moody’s downgraded the U.S. credit rating over rising debt, amid the debate over Trump’s tax bill, which could add trillions to the deficit. Investors are concerned about higher borrowing costs and fiscal instability, especially with limited spending cuts and the approaching debt ceiling. The bill’s potential to worsen the deficit has raised alarms about fiscal discipline in Washington.
Although the White House dismissed the downgrade as politically motivated, market concerns remain, with fears that without fiscal reform, the country’s debt trajectory could lead to a crisis. Investors are closely watching Congress as it debates the bill and seeks solutions to the growing deficit.
China’s Factory Growth Slows In April, But Resilient Amid Trade War Uncertainty
China’s industrial output rose 6.1% in April, slowing from March’s 7.7% but exceeding forecasts. The data suggests that government stimulus helped cushion the blow from ongoing U.S. tariffs. Despite resilient exports and gains in home appliance sales, challenges remain: retail sales slowed, commodity output dipped, and the property market stayed weak. Economists warn that trade tensions, weak domestic demand, and deflationary pressure may require more policy easing. A recent U.S.-China tariff rollback offers temporary relief, but growth headwinds persist.
IsDB to Offer Algeria $3bn Infrastructure, Devt Projects Loans
The President of the Islamic Development Bank, Muhammad Sulaiman Al Jasser, announced on Monday that Algeria is set to receive $3 billion in loans over the next three years. This substantial financial support is aimed at facilitating the execution of critical infrastructure and development initiatives across the country. Speaking to Algeria’s Ennahar TV, Al Jasser emphasized that the funding will be allocated to strategic projects, including the expansion and modernization of the national railway network. These efforts are aligned with the Algerian president’s broader vision to enhance connectivity between the country’s key economic zones and drive sustainable development.
DBN Sets N1.8tn Loan Target, Eyes 2m Jobs In MSME Growth Drive
The Development Bank of Nigeria (DBN) has unveiled a five-year plan to expand its loan portfolio to over N1.8 trillion and raise N3 trillion in debt and equity to boost MSME financing. Managing Director Tony Okpanachi said the plan prioritises inclusive growth, with 20% of loans for women-led businesses and 40% for underserved groups. DBN also aims to increase green financing, support underdeveloped regions, and create two million jobs, focusing on sectors like agriculture and manufacturing.
So far, DBN has disbursed over N1 trillion through 79 partner institutions, reaching more than 69,000 MSMEs—74% of them women-led. Over 9,500 businesses have also received capacity-building support. The bank is exploring local and global funding options, including a potential bond programme, to sustain this growth.
