RFA Breakfast Paper - August 26, 2026

Brent Extends Decline as Middle East Diplomatic Progress Eases Supply Concerns

Brent crude futures fell below $87 per barrel on Thursday, extending losses for a fourth consecutive session as signs of diplomatic progress in the Middle East reduced concerns over prolonged supply disruptions. Iran and Oman reached an agreement on their respective shares of the Strait of Hormuz’s waters and related revenues, although Tehran cautioned that reopening the strategic waterway would require further agreements beyond the bilateral deal. President Donald Trump said around 10 million barrels of oil had transited Hormuz on Tuesday and reiterated that mines in the waterway had been cleared, suggesting that shipping activity was gradually recovering. Oil prices also faced pressure from less aggressive-than-expected US sanctions on Iran, with Washington so far refraining from imposing tougher measures on Iran’s trading partners, reducing fears of a sharper supply shock. However, geopolitical risks remain elevated, with reports that Russia could escalate military operations in Ukraine posing an additional threat to global energy supply stability. Overall, easing tensions around Hormuz and reduced sanctions risk have shifted the near-term oil outlook toward greater supply availability, although geopolitical risks continue to limit the downside.

U.S. Stocks Slip as PCE Runs Hot

U.S. equities edged lower on Wednesday as a firmer inflation reading tempered rate-cut expectations ahead of Nvidia's results. The S&P 500 slipped 0.02% to 7,675.70, the Nasdaq Composite eased 0.08% to 26,130.20 and the Dow fell 0.21%. July core PCE held at 3.3% year-on-year while the headline gauge rose to 3.7%, above forecasts, lifting the 10-year Treasury yield to 4.65%. Energy and industrials firmed, but healthcare and consumer names lagged; Abercrombie & Fitch surged on strong results as Intuit fell on soft guidance.

NGX Extends Slide After Eid Break

Nigerian equities resumed their correction after Tuesday's Eid-el-Maulud public holiday, with the All-Share Index down 0.17% to 238,682.92 and market capitalisation easing to ₦154.14 trillion. The banks led the retreat: the NGX Banking Index fell 0.63% as Zenith Bank shed 2.05%, FCMB 3.06% and Jaiz Bank 7.10%, while the NGX 30 slipped 0.11% to 8,763.20. Market breadth was balanced between advancers and decliners; Neimeth led the gainers at +9.66% and Fidson Healthcare paced the losers at -9.99%. The pullback extends a weeks-long profit-taking phase, though the index remains up close to 70% for the year.