Global borrowing surges among G7 economies including the US, UK and Japan as governments are seeing borrowing costs reach their highest levels in 30 years. The surge is said to be driven by multiple factors including: inflation, geopolitical tensions (including the Iran conflict) and uncertainty in economies over interest rates which currently stands at 3.75% in the UK as per the Bank of England as of April 2026.

This surge has created an average of 4.6% on bonds across the G7, promoting some investors due to the higher yields, however also creating uncertainty among some who demand higher returns from government bonds due to a higher suspected risk.

Overall this higher borrowing can slow economic growth, raise mortgage rates (reducing disposable income for consumers within a economy) and create difficulties managing government debt as we are seeing at current among many nations, particularly in the G7.

The Iran conflict continues as it still shakes the Middle-East and its markets, particularly the oil market which has seen major price increases due to the closure of the Straight of Hormuz which usually moved 20 million barrels of oil per day among other goods which move through the straight.

This spike in oil prices also creates a rise in food prices worldwide as may nations struggle, creating a shift towards “safe haven” assets such as the US dollar which is seen as less volatile to global shocks.

Recently however the UAE left OPEC and OPEC+ which at one point controlled and regulated around 50% of global oil production through its member states which included: Saudi Arabia, Iraq, Iran and the UAE and many other nations. The UAE leaving this economic “cartel” creates more freedom for the UAE to pump more oil to a wanted 5 million barrels per day by 2027, this shift is seen by the changes in the United Arab Emirates economy which has seen a major shift towards finance and tourism, who no longer depend on the oil sector and its regulated high prices from OPEC, seen by the UAE’s 77% non-oil sector. This move weakens OPEC and reduces Saudi influence whilst possibly also creating some volatility among oil markets. Some also suggest the move was to remove an economic relationship with Iran who attacked the UAE among the ongoing conflict.

African leaders at the Africa Forward Summit in Nairobi yesterday called for major reforms on international finance following Nigerias expected $11.6 billion debt repayments in 2026 which equates to half of Nigeria’s annual government revenue. Nigerian president Bola Tinubu argued African nations are treated unfairly and as “high risk borrowers” forcing these high payments. Tinubu mentioned that the high interest on loans limits his ability to support: healthcare, education, infrastructure and industrial growth within his nation to the level demanded.