RFA Breakfast Paper - May 11, 2026

Brent Climbs Above $102 as Hormuz Risks Intensify

Brent crude futures rose above $102 per barrel, extending recent gains after Donald Trump said the US–Iran ceasefire was on “massive life support,” raising fears that disruptions through the Strait of Hormuz could persist for longer. Reports indicated that Iran is demanding an end to the US naval blockade and sanctions relief while seeking to retain some oversight of traffic through the strait. At the same time, Trump is reportedly meeting with his national security team to consider renewed military operations and potential naval escorts for commercial vessels. Supply concerns were further amplified after Amin Nasser of Saudi Aramco warned that the market is losing roughly 100 million barrels of supply each week, adding that prolonged disruptions could delay market normalization until next year.

U.S. Equities Edge Higher Ahead of Key Inflation Data

U.S. stocks closed slightly higher on Monday, with the S&P 500 reaching another record high as markets extended their recent rally into a sixth straight week. Trading remained relatively quiet due to a light economic calendar, with April existing-home sales showing little change from March and broadly matching expectations. Investor focus now shifts to key economic releases later this week, particularly Tuesday’s CPI report and Thursday’s retail sales data, which are expected to provide clearer direction on inflation and consumer spending trends. Treasury yields moved higher ahead of the data, with the 10-year yield rising to 4.41% and the 2-year yield settling at 3.95%. Geopolitical tensions also stayed on investors’ radar after the U.S. rejected Iran’s latest counterproposal over the weekend. However, market reaction remained limited, as equities still posted modest gains while oil prices edged higher on supply concerns. Overall, the session reflected cautious optimism, with investors balancing strong market momentum and resilient economic conditions against uncertainty surrounding inflation, interest rates, and global tensions.

Nigerian Equities Surge as Strong Buying Lifts Market Activity

The Nigerian equity market started the week on a strong bullish note, with investors increasing exposure to mid-cap and blue-chip stocks, particularly within the banking and industrial sectors. Sustained buying pressure pushed the NGX All-Share Index higher by 2.33%, gaining 5,705.59 points to close at 250,481.42. Market capitalization also advanced by ₦3.66 trillion to settle at ₦160.76 trillion, reflecting improved investor sentiment and renewed confidence in the domestic equities market. The broad market rally highlighted strong demand across key sectors as investors continued to position in fundamentally attractive counters. Market activity strengthened significantly during the session, supported by higher trading volume and value turnover. Total volume traded rose by 39.32%, while the value of transactions increased by 24.38%. Investors exchanged approximately 1.49 billion shares worth ₦68.45 billion across 94,834 deals, indicating stronger participation from both institutional and retail investors. Overall, the session reflected sustained bullish momentum in the Nigerian market, with increased liquidity and sector-driven buying supporting the market’s strong start to the week.