RFA Breakfast Paper - September 4, 2026
Brent Crude Surges Above $97 as US-Iran Conflict Raises Supply Risks
Brent crude rose above $97 per barrel on Monday, approaching three-month highs as renewed US-Iran hostilities heightened concerns over prolonged disruptions to Middle Eastern energy flows. The escalation followed US strikes on three Iranian oil tankers in retaliation for ballistic missile attacks on US Navy warships, while Tehran responded by targeting oil tankers and other vessels linked to the US and signaling plans to establish a “restricted” maritime zone beyond the Strait of Hormuz. The US has also indicated that its naval presence in the region will be maintained, including the blockade aimed at curbing Iranian oil exports and securing commercial shipping through Hormuz. With fighting resuming after roughly a month of relative calm, oil prices have risen around 10%, reflecting a sharp repricing of geopolitical and supply risks. A prolonged disruption to Hormuz flows would provide further upside risk to crude prices and could reinforce inflationary pressures globally.
Stocks Slip as Jobs Data Lifts Yields
U.S. equities closed lower on Friday, the S&P 500 down 0.38% to 7,718.60 and the Nasdaq Composite off 0.29% to 26,506.99, as a hotter-than-expected August payrolls report reset rate expectations. The economy added 162,000 jobs versus forecasts near 56,000, with prior months revised higher, pushing the 10-year Treasury yield up almost three basis points to 4.79% and lifting market-implied odds of a September Fed rate hike to about 52%. Rate-sensitive growth names led the retreat as investors looked to next week's inflation data.
NGX Extends Gains as Banks Lead Higher
The Nigerian Exchange closed the week higher, with the All-Share Index up 0.25% to 246,992.44 and the NGX 30 up 0.29% to 9,077.49, lifting market capitalisation about ₦405.67 billion to ₦159.56 trillion. The banking index outperformed, adding 0.44% to 2,636.10, though moves were mixed as UBA eased 0.33% to ₦45.85 and Access Holdings slipped 0.17% to ₦30.00. Nigerian Breweries was the standout, surging 9.93% to ₦82.45 and effectively anchoring the day's advance, while NGX Group fell 5.45% to ₦130.00 and Beta Glass dropped 8.21% to ₦465.00. Breadth stayed negative at 31 decliners to 28 advancers, underscoring a headline gain still reliant on a few large names rather than broad participation.
