By Adedapo Adesanya

Oil prices jumped 3 per cent on Wednesday as mounting supply concerns following escalating hostilities between the United States and Iran, while threats to ‌shipping by the Iran-backed Houthi militia in Yemen further boosted prices.

Brent crude futures went up by $3.06 or 3.36 per cent to $94.07 a barrel, while the US West Texas Intermediate crude climbed $2.49 or 2.95 per cent to $86.83 a barrel.

The US military said it carried out ​an 11th consecutive night of attacks on Iran. The US attacks came a short while after the Kuwaiti army said ⁠its air defences were intercepting Iranian drones.

President Donald Trump said on Wednesday the US would “bomb and destroy one bridge or power plant” any time Iran targets ​a ship in the Strait of Hormuz.

Iran’s Revolutionary Guards’ spokesperson warned shipping companies that the Strait of Hormuz southern route is mined.

As well as the renewed conflict over control of that key waterway, the Iran-aligned Houthis have opened a new front in the war by threatening to target vessels carrying Saudi oil in the Bab el-Mandeb Strait and announced a naval blockade of Saudi Arabia.

Bab el-Mandeb at the southern entrance to the Red Sea has become an increasingly important route for Saudi Arabian crude exports as traffic through the Strait of Hormuz has fallen sharply again since a ceasefire between the US and Iran collapsed earlier this month.

Five tankers in the Red Sea avoided the Bab el-Mandeb Strait on Wednesday after ​the Houthis’ threat to block Saudi oil ​exports.

The European Union’s naval ​force Aspides said on Wednesday that ships with links to Israel, the US or Saudi Arabia are at a higher risk of ​being attacked by Yemen’s Iran-aligned Houthi militia and are advised to avoid voyages through the Red Sea and Gulf of Aden.

Crude oil inventories in the US saw an increase of 2.0 million barrels during the week ending July 17, according to new data from the US Energy Information Administration (EIA) released on Wednesday.

It follows figures by the American Petroleum Institute (API) that were released a day earlier, which reported that crude oil inventories had risen by 2.603 million barrels in the period.

The increase brings commercial stockpiles to 411.7 million barrels, according to government data, which are now 6 per cent below the five-year average for this time of year.

Meanwhile, European Union (EU) ambassadors failed on Wednesday to agree on a 21st package of sanctions against Russia over its invasion of Ukraine in 2022.

By Aduragbemi Omiyale

The Debt Management Office (DMO) on Monday allotted bonds worth N929.3 billion to investors from the N1.7 trillion bids it received from subscribers.

The exercise, which took place on Monday, July 20, 2026, was oversubscribed by market participants, reflecting the confidence investors have in the government’s ability to redeem the debt instrument on maturity.

On offer for sale for the July auction was N1.2 trillion worth of the FGN bonds, but the DMO allotted below this, despite receiving bids above the offer.

The papers were offered in 10-year, 15-year, and 20-year tenors, at N400 billion each.

For the decade-old note, investors staked N444.47 billion, but the debt office sold N245.73 billion at an 18.34 per cent coupon rate. For the one and a half-decade-old paper, bids valued at N518.00 billion were received by the DMO, with a non-competitive bid of N50.00 billion, with N302.13 billion allotted to investors at 18.40 per cent, and for the two-decade paper, the DMO got competitive bids of N665.19 billion and N381.46 billion was sold to bondholders at 18.35 per cent.

By Adedapo Adesanya

The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, disclosed that Nigeria’s external reserves had risen to $52.5 billion, enough to finance about nine months of imports.

He disclosed this on Tuesday at the end of the 306th meeting of the Monetary Policy Committee (MPC) held in Abuja, where the Monetary Policy Committee (MPC) retained the benchmark interest rate at 26.50 per cent as well as the standing facilities corridor at +50/-450 basis points around the MPR.

Similarly, the Cash Reserve Requirement (CRR) was maintained at 45 per cent for Deposit Money Banks, 16 per cent for Merchant Banks, and 75 per cent for non-Treasury Single Account (TSA) public sector deposits.

Speaking on FX developments, the central banker said at the $52 billion level, the country’s external reserves were significantly above the internationally recommended threshold of three months of import cover.

On the Naira exchange rate, Mr Cardoso said the foreign exchange market had deepened and was now operating on a transparent willing-buyer, willing-seller basis.

He said the apex bank remained committed to maintaining a liquid and functional foreign exchange market, adding that daily market turnover sometimes exceeded $1 billion.

According to him, the long-term stability of the naira would depend on key economic fundamentals, including increased oil exports, foreign direct investment, and improved domestic productivity to reduce dependence on imports.

He also added that the MPC welcomed the federal government’s renewed commitment to stronger policy coordination, particularly collaboration between fiscal and monetary authorities, which he said had helped reduce the impact of the Middle East crisis on the Nigerian economy.

Mr Cardoso said members of the committee also commended efforts to improve crude oil production and urged relevant agencies to intensify reforms in other sectors, including solid minerals, to boost government revenue.

On the regulatory forbearance granted to banks during the COVID-19 period, he reiterated that this had been discontinued because it had served its purpose.

According to him, the policy had “outlived its time” and was no longer necessary in assessing the health of the banking sector.

“Forbearance, we felt, had outlived its time. Many of you will recall this is something that came as a result of COVID. And now we are in 2026; we did not see the reason why that should continue to form part of the analysis of the banking system,” he said.

Mr Cardoso explained that banks had begun recalibrating their portfolios following the end of the policy, leading to a temporary reduction in outstanding risk assets.

He, however, assured that the development was part of a transition towards a stronger and more sustainable credit environment.

“It reflects a transition to a more sustainable and better quality credit environment, which is what we all want. We don’t want unanticipated shocks that come in a boom-and-bust fashion,” he said.