CBK: Oil prices inch higher ahead of US-Iran talks
By Faith Lagat, February 7, 2026International oil prices edged up slightly during the week ending February 5, as markets awaited planned talks between the United States and Iran, the Central Bank of Kenya (CBK) has reported.
Murban crude oil closed at USD 68.50 per barrel on February 5, up from USD 68.46 on January 29. The marginal increase came amid cautious optimism that diplomatic engagement could ease geopolitical tensions in the Middle East, a region critical to global oil supply.
“International oil prices increased marginally ahead of planned U.S-Iran talk. Murban crude oil traded at USD 68.50 per barrel on February 5, from USD 68.46 per barrel on January 29.”
Inflation and global monetary trends
The CBK’s weekly bulletin highlighted easing inflation pressures in advanced economies. Euro Area headline inflation dropped to 1.7 percent in January 2026 from 1.9 percent in December 2025, mainly due to falling energy prices.
Core inflation in the region declined to 2.2 percent. Both the European Central Bank and the Bank of England maintained their policy rates during the review period.
The U.S. Dollar Index strengthened by 1.60 percent over the same week, buoyed by market sentiment following the announcement of Kevin Warsh as the new Federal Reserve Chair.
Local markets show gains amid Lower Trading
On the Nairobi Securities Exchange, the NASI, NSE 25, and NSE 20 share indices rose by 3.72 percent, 2.45 percent, and 1.37 percent respectively.
Market capitalisation expanded by 3.73 percent, reflecting renewed investor confidence. However, equity turnover dipped by 0.68 percent and total shares traded fell by 9.74 percent, signalling lower trading activity despite the price gains.
In the fixed-income market, secondary bond turnover declined by 5.14 percent during the week. Yields on Kenya’s Eurobonds fell by an average of 3.65 basis points, indicating improved investor appetite for Kenyan debt.
“At the Nairobi Securities Exchange, the NASI, NSE 25 and NSE 20 share price indices increased by 3.72 percent, 2.45 percent and 1.37 percent, respectively, during the week ending February 5. Market capitalisation rose by 3.73 percent, while equity turnover and total shares traded declined by 0.68 percent and 9.74 percent, respectively,” read the CBK bulletin in part.
Yields for Angola edged higher, while those of Côte d’Ivoire remained stable. Analysts attribute the NSE gains to sustained foreign investor inflows and attractive valuations in select blue-chip counters.
The CBK noted that global trends continue to influence domestic financial markets. Easing inflation in advanced economies and steady monetary policy in Europe have supported risk assets, including emerging-market equities and bonds.
Market participants will closely watch the outcome of the upcoming U.S.-Iran talks, as any breakthrough could further stabilise energy prices, while escalation risks remain a concern for importers like Kenya.