Wall Street stocks retreated early Tuesday as analysts pointed to angst over inflation pressures as the prolonged Middle East war kept oil prices high.

Equities had until recently “shrugged off the effects of higher yields”, Interactive Brokers’ Steve Sosnick said of increases in bond yields.

“After pretending this was not a problem, I think (the market) has now decided that higher yields are in fact a problem,” Sosnick said. “But we aren’t seeing panic or anything like that.”

About 10 minutes into trading, the Dow Jones Industrial Average was down 0.8 per cent at 49,289.53.

The broad-based S&P 500 dropped 0.4 per cent to 7,372.49, while the tech-rich Nasdaq Composite Index shed 0.3 per cent to 26,024.82.

Iran’s army warned on Tuesday it would “open new fronts” against the United States if it resumed attacks after President Donald Trump said he had held off launching a new offensive in hopes of striking a deal.

Major US indices were also under pressure on Monday as semiconductor equities sold off a fraction of their recent gains. Sosnick described the dynamic as profit-taking ahead of Wednesday’s release of Nvidia’s earnings.

Rising government bond yields also weighed on sentiment, with the yield on 30-year US Treasuries hitting its highest level in nearly 19 years. The move indicated growing market unease over inflation, energy prices and fiscal worries.

President Trump said he held off a major new assault against Tehran as he saw hopes for securing an agreement to end the conflict, which was sparked by US and Israeli strikes on Iran at the end of February.

Stocks did not get much of a boost from Trump’s announcement, with Wall Street’s major indices lower in late morning trading.

European indices ended the day mixed.

“Investors are showing relief that tensions haven’t escalated,” said Russ Mould, investment director at AJ Bell.

He added, however, that “oil prices remain at high enough levels to weigh on the global economy.”

A fresh crack has emerged in the downstream oil sector as members of the Jetties and Petroleum Tank Farm Owners of Nigeria distanced themselves from the position of the Depot and Petroleum Products Marketers Association of Nigeria on fuel importation, throwing their weight behind the Dangote Petroleum Refinery’s push to halt fresh petrol imports.

The tank farm owners also called on the Federal Government and the Nigerian Midstream and Downstream Petroleum Regulatory Authority to cancel existing import licences for Premium Motor Spirit (petrol), insisting that local refining capacity can now meet domestic demand.

The position was contained in a communiqué issued by the association and made available to journalists through its Executive Secretary, Mr Olayiwola Temitope, on Tuesday.

The development comes amid rising tension in the downstream sector following a fresh lawsuit filed by the Dangote Petroleum Refinery challenging the issuance of petrol import licences to marketers and the Nigerian National Petroleum Company Limited.

The PUNCH reports that the NMDPRA recently approved licences for the importation of over 700,000 metric tonnes of petrol despite claims that the Dangote refinery now supplies more than 90 per cent of the nation’s daily PMS consumption.

The import approvals have triggered criticism from some marketers and depot operators, who warned that restricting imports could create a monopoly in the downstream sector.

DAPPMAN had faulted the refinery’s legal action and argued that import licences were necessary to guarantee energy security and sustain competition in the deregulated market. It also vowed to join the suit in defence of its members who are fuel importers, saying the billions spent on depot infrastructure should not be allowed to go to waste because of Dangote.

However, JETFON said it does not share the same position as DAPPMAN on the issue of fresh import licences. According to the association, continued fuel importation is no longer economically justifiable given the growing refining capacity within the country.

The tank farm owners argued that the Dangote refinery and other local refineries have significantly reduced Nigeria’s dependence on imported fuel and should be protected rather than undermined. They warned that granting fresh import permits would weaken local investments and frustrate efforts aimed at achieving energy independence.

“Relying on foreign refined products leaves the local economy vulnerable to external supply chain shocks, international logistics disruptions, and continuous foreign exchange pressures that weaken the naira,” the statement said. “By prioritising local refineries, Nigeria can build a self-sustaining and secure domestic fuel supply ecosystem.”

The association maintained that Nigeria’s long-term economic stability depends on strengthening domestic refining rather than encouraging import dependence. JETFON also cited recent data released by the NMDPRA, which showed a sharp decline in fuel imports and an increased contribution from local refining.

According to the regulator’s April 2026 factsheet referenced by the association, Nigeria’s daily petrol consumption rose to 51.1 million litres in April from 47.3 million litres recorded in March.

At the same time, daily fuel imports reportedly dropped by 37.3 per cent, from 5.9 million litres in March to 3.7 million litres in April. The association noted that local refineries, led mainly by the Dangote refinery, supplied about 40.7 million litres daily during the period, significantly replacing imported products.

JETFON argued that the figures demonstrate that domestic refining is already taking over the market and reducing pressure on foreign exchange demand. It added that supporting local refining would help stabilise the naira, conserve external reserves, and create jobs across the petroleum value chain.

“With the Federal Government backing local refineries, Nigeria stands to drastically reduce its heavy reliance on foreign exchange for fuel imports, thereby easing the persistent pressure on the naira and conserving vital external reserves.

“Beyond forex stability, a thriving local refining sector serves as a massive catalyst for economic growth, generating direct and indirect employment for thousands of skilled Nigerian youths,” the statement added.

The association urged the Federal Government and the NMDPRA to stop issuing fresh import licences and review existing approvals to protect local investments and industrial growth.

The latest position by the tank farm owners is expected to deepen divisions within the downstream sector, as stakeholders remain sharply divided over the future of fuel importation in Nigeria.

Officials of DAPPMAN declined to comment, saying the association would meet before making further comments.

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The Lagos State Government has announced a ban on the movement of goods and heavy luggage on all regulated public transport buses across the state.

The enforcement of the directive is scheduled to take effect on June 1, 2026.

Lagos Metropolitan Area Transport Authority announced the directive in a statement issued on Tuesday by its Head of Corporate Communication, Kolawole Ojelabi.

LAMATA said the move follows growing complaints and operational challenges faced by commuters due to the increasing use of regulated buses for transporting goods and heavy loads, which it said has compromised passenger comfort, safety, and efficient service delivery.

According to the statement, the directive was reached after a strategic meeting between LAMATA and heads of operations and maintenance of bus operating companies, where it was unanimously agreed that the practice must be halted and reorganised to ensure a balanced and sustainable system that protects commuters while supporting transport operators.

LAMATA emphasised that the enforcement of the suspension will be strict and uncompromising. Any bus driver found violating the directive by conveying goods during the suspension period will face immediate sack and be blacklisted.

“In addition, any ground staff or LAMATA personnel at terminals or loading points found aiding, permitting, or facilitating the loading of goods onto regulated buses will be summarily dismissed without exception,” the statement read.

LAMATA stressed that there will be zero tolerance for non-compliance, saying the government remains committed to restoring order, safety, and efficiency within the public transport system.

It urged commuters, transport operators, terminal officials, and members of the public to comply fully with the directive and make alternative arrangements for the movement of goods.

The authority reiterated its commitment to delivering a safe, reliable, and commuter-focused transportation system for Lagos residents.

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