LONDON, ENGLAND — Oil prices fell on Monday as hopes of easing US-Iran tensions eased supply concerns. Brent crude dropped 1.7% to $114.70 per barrel, while US WTI fell 2.5% to $100.71.
However, continued Houthi attacks on Saudi Arabia and disruptions to regional shipping kept prices elevated. The International Energy Agency warned that global energy markets may not return to pre-war conditions in 2027.
Spain’s Industrial Prices Rise 18.3% in September
Spain’s industrial prices climbed 18.3% year-on-year in September, up from 13.2% in August, according to the National Statistics Institute. Prices also rose 4% month-on-month, signalling stronger price pressures across the country’s industrial sector.
Bank of Canada Expected to Raise Rates to 2.5%
The Bank of Canada is expected to raise interest rates by 25 basis points to 2.5% on Wednesday. The move aims to curb inflationary pressures from rising energy prices, despite weak employment and slowing economic growth. The decision is also expected to include an updated inflation outlook, with another rate hike possible before March.
Moody’s Sees South Africa’s Budget as Credit Positive
Moody’s Ratings said South Africa’s budget outlook supports its credit profile, citing fiscal consolidation and improved tax revenue. The government cut its 2026 deficit target to 3.9% of GDP. Moody’s maintained the country’s Ba2 rating with a positive outlook, while warning that high debt-servicing costs remain a concern.
Lagos, Four Others Hold 54% of Nigeria’s Subnational Domestic Debt
Nigeria’s subnational domestic debt reached ₦4.6 trillion in June 2026, representing 5% of the country’s ₦91.6 trillion domestic debt. Lagos, Delta, the FCT, Rivers, and Edo accounted for 54% of the total, with Lagos contributing 26%. States’ debt sustainability will depend on revenue growth, spending control, and borrowing costs.
What This Means
The drop in oil prices could provide relief to consumers and businesses. Lower energy costs can reduce inflation and boost economic growth.
However, the ongoing conflict in the Middle East remains a risk. Any escalation could send prices soaring again.
For Nigeria, the high subnational debt is a concern. States must improve revenue generation and spending discipline to remain sustainable.
What Happens Next
The Bank of Canada’s decision will be closely watched. It could signal the direction of monetary policy in advanced economies.
For now, the focus is on the peace talks between the US and Iran. The outcome will shape the outlook for oil prices and the global economy.
