RFA Breakfast Paper - May 22, 2026
Brent Falls Toward $98 as US–Iran Deal Hopes Improve
Brent crude futures dropped about 5% toward $98 per barrel, extending last week’s losses as optimism grew over a possible agreement between the United States and Iran. Reports suggested the proposed deal could pave the way for the reopening of the Strait of Hormuz, an easing of hostilities, the release of frozen Iranian assets, and further negotiations surrounding Tehran’s nuclear program. However, President Donald Trump stated that Washington would maintain its naval blockade until a formal agreement is finalized, adding that he would not “rush” into a deal. A reopening of Hormuz would significantly ease pressure on global energy markets, particularly for major Asian economies, since the route handles roughly 20% of global oil and LNG shipments. The prolonged Iran conflict and the dual blockade have sharply disrupted energy supply chains, forcing Middle Eastern producers to cut millions of barrels per day in output and driving oil prices sharply higher in recent months.
Dow Hits Record High as Investors Monitor U.S.-Iran Developments
U.S. equity markets closed the week on a positive note Friday, with the Dow Jones Industrial Average reaching a fresh record high as investors balanced improving economic data against ongoing geopolitical uncertainty surrounding U.S.-Iran negotiations. Market sentiment remained broadly constructive despite a downward revision to consumer sentiment figures, as stronger leading economic indicators reinforced expectations that economic activity remains resilient. Treasury yields edged modestly higher during the session, with the 10-year U.S. Treasury yield rising to 4.56%, reflecting cautious optimism around growth and inflation expectations. In commodity markets, WTI crude oil prices rebounded after recent weakness, as investors continued to assess potential supply risks tied to developments in the Middle East and the uncertain outlook for global energy flows. Currency markets saw the U.S. dollar strengthen against major peers, although trading remained largely rangebound throughout the week as investors awaited clearer direction from economic data and geopolitical developments. Overall, the market’s advance suggested that investors remain willing to take on risk, supported by resilient macroeconomic conditions and hopes that diplomatic discussions between the United States and Iran could ease broader market concerns without disrupting global growth expectations.
NGX Ends Week in Positive Territory Amid Selective Buying
The Nigerian equity market closed the week higher, with the NGX All-Share Index and market capitalization both gaining 0.22% as investors sustained buying interest in mid-cap and blue-chip stocks across major sectors. The NGX-ASI advanced by 536.98 basis points to close at 249,712.37, while market capitalization increased by ₦344.23 billion to settle at ₦160.08 trillion. Despite recording more bullish sessions during the week, the market still posted a negative weekly performance, with the NGX-ASI declining by 0.25% and investors’ wealth falling by approximately ₦366.40 billion. Trading activity weakened during the session, as total volume and value traded declined by 32.76% and 6.08%, respectively. Investors exchanged approximately 711.86 million shares valued at ₦29.08 billion across 62,386 deals. The softer turnover reflected cautious participation, although selective buying interest in fundamentally strong stocks continued to support the market’s rebound at the close of the week.
