Akintunde Oyedokun
Research Analyst
Oil prices fell on Monday as Iran pushed for a ceasefire with Israel, easing concerns over a potential disruption in crude supply. Brent crude dropped by $1 to $73.23, while U.S. WTI declined by $1.21 to $71.77.
Iran has reportedly engaged Qatar, Saudi Arabia, and Oman to urge the U.S. to press Israel for an immediate truce in exchange for flexibility in its nuclear talks. This reduced the geopolitical risk premium that had driven prices higher last week.
Despite airstrikes between both nations, critical oil infrastructure—including Kharg Island and the Strait of Hormuz—remains unaffected, keeping oil exports steady.
ECB Downplays Inflation and Euro Strength Concerns Amid Tariff Impact
ECB Vice President Luis de Guindos says tariffs will pressure euro zone growth and prices, but inflation remains on track toward the 2% target. He dismissed fears of a return to ultra-low inflation, citing strong wage growth and a resilient labour market. Though the euro has surged 11% against the dollar, de Guindos said the rise has been gradual and manageable. He also rejected the idea of the euro challenging the dollar’s reserve currency status, pointing to structural limitations in the euro zone.
China’s Property Market Slips Again Despite Policy Support
China’s new home prices fell 0.2% in May, extending a two-year stagnation despite recent policy efforts. Prices were down 3.5% year-on-year, highlighting persistent weakness in the sector. Smaller cities saw sharper declines, while Tier-1 cities showed mild resilience. Property investment dropped 10.7% in the first five months of 2025, and sales fell 2.9%. Experts warn steeper drops could follow without stronger, localized policy action, even as Beijing pledges to stabilize the market.
Ghana Loses $11.4 Billion to Gold Smuggling as Most Ends Up in UAE — Swissaid
Ghana has lost $11.4 billion over five years to gold smuggling, with much of the undeclared gold flowing to the UAE through informal routes via Togo, Mali, and Burkina Faso, according to a Swissaid report. The problem worsened after a 3% export tax on artisanal gold introduced in 2019 led to a collapse in formal exports, pushing miners to the black market. Although the tax was later reduced and eventually scrapped in 2024, smuggling persists—34 tons of gold went undeclared in 2023 alone. While Ghana earned $11.6 billion from gold exports last year, reforms to curb illicit trade have been slow, mirroring a wider African trend where informal mining both supports livelihoods and fuels illicit networks.
Nigeria’s Inflation Eases to 22.97% in May Amid Revised Metrics
Nigeria’s headline inflation eased for the second consecutive month to 22.97% in May from 23.71% in April, following a rebasing of the inflation basket by the statistics agency, which revised the base year to 2024 from 2009. This adjustment led to a sharp drop in inflation figures from 34.80% in December to 24.48% in January. The decline reflects improving macroeconomic conditions after President Bola Tinubu’s reforms, including subsidy removal and naira devaluation. Food inflation, a major contributor, also edged down to 21.14% in May. The central bank kept its interest rate steady for a second straight meeting, citing signs of price moderation.
