RFA Breakfast Paper - July 28, 2026

Brent Jumps as Renewed Middle East Tensions Rekindle Supply Fears

Brent crude futures surged more than 4% to around $88 per barrel on Wednesday, snapping a three-day losing streak as renewed hostilities in the Middle East reignited geopolitical tensions and revived concerns over potential disruptions to global energy supplies. The United States military said it had successfully intercepted what it described as a surprise Iranian attack targeting US forces stationed across the region, while Iran-backed militias in Iraq launched drone attacks on oil facilities in Saudi Arabia's Eastern Province for a second consecutive day, although the extent of the damage remains uncertain. On the diplomatic front, Iran rejected Oman's proposal for shared control of the Strait of Hormuz, insisting on retaining full authority over the inbound shipping lane and partial control of the outbound route, highlighting the continued deadlock in negotiations over the strategic waterway. Meanwhile, in the US, industry data from the American Petroleum Institute showed crude oil inventories fell by 3.3 million barrels last week, reinforcing expectations of tight global supply conditions. The combination of renewed geopolitical risks and declining US crude stockpiles has strengthened the bullish outlook for oil prices, with markets remaining highly sensitive to further developments in the region.

U.S. Equity Markets End Mixed as Technology Stocks Lag

U.S. equity markets ended mixed on Tuesday as gains across most sectors lifted the broader market, while continued weakness in technology stocks weighed on the Nasdaq. Selling pressure in semiconductor shares persisted, extending losses from Asian markets after South Korea's Kospi index fell more than 10%. Despite the pullback in technology, strength across non-tech sectors supported the S&P 500, underscoring the continued broadening of market leadership beyond the technology sector. Market conditions were also supported by easing bond yields, with the 10-year U.S. Treasury yield declining to around 4.61%. In commodity markets, WTI crude oil extended its recent decline, falling below $80 per barrel and helping to ease inflation concerns. Meanwhile, the U.S. dollar weakened modestly against major currencies, reflecting the decline in Treasury yields. The session highlighted investors' continued rotation into sectors beyond technology as markets sought broader sources of growth.

NGX Rebounds as Insurance Stocks Lead Broad-Based Gains

The Nigerian equity market rebounded on Tuesday as renewed bargain hunting in mid-cap and blue-chip stocks lifted investor sentiment. Buying interest was broad-based, with four of the five major sectors closing higher, led by the Insurance sector. Consequently, the NGX All-Share Index (ASI) gained 745.81 basis points, or 0.30%, to close at 247,984.55, while market capitalization increased by ₦481.18 billion to ₦159.99 trillion. The positive close reflects a return of buying interest following the previous session's mild weakness. Trading activity was mixed during the session, with total trading volume rising by 6.11% to 676.92 million shares, while the value of transactions declined by 36.32% to ₦36.43 billion across 55,412 deals. Sectoral performance remained largely positive, with the Insurance sector leading the gains, followed by Consumer Goods, Industrial Goods, and Oil & Gas, while Banking was the only sector to finish lower. The combination of broad sectoral gains and improved trading volume suggests investor sentiment remained constructive despite the softer value of trades.