Oil prices have rebounded above $100 per barrel as the U.S.-Israel war on Iran enters its second week, fueling fears of a prolonged energy crisis. Brent crude, the international benchmark, peaked at $101.59 per barrel on Thursday, up nearly 38% since the conflict began in February. Iran’s new supreme leader has ordered the Strait of Hormuz, a critical oil shipping route, to remain closed, while the United States maintains that halting Iran’s “evil empire” takes priority over oil market stability.
The war has displaced millions within Iran, creating an urgent humanitarian crisis. According to the United Nations, between 600,000 and one million Iranian households, equivalent to roughly 3.2 million people, are temporarily displaced. Ayaki Ito, UNHCR’s Middle East emergency coordinator, warned that “this figure is likely to continue rising as hostilities persist,” underscoring the growing strain on emergency aid and shelter for affected families.
In Nigeria, the crisis’s ripple effects prompted the Nigerian National Petroleum Company Limited (NNPCL) to reduce petrol prices to N1,130 per litre in Lagos and N1,165 per litre in Abuja, reflecting a drop of nearly N100 per litre. The reduction follows a similar move by Dangote Refinery, which cut ex-gantry petrol prices to N1,075 per litre. Despite global volatility, these adjustments aim to provide temporary relief to Nigerian motorists amid fluctuating oil prices.
Amid rising fuel and transportation costs, Nigerian workers under the Working People United (WoPU) movement have called on federal and state governments to implement palliative measures. Interim National Coordinator Williams Akporeha suggested temporary free transport for workers and collaboration with transport unions to subsidize costs. The group stressed that proactive interventions are critical to protect citizens from the economic impact of global oil market instability.
Despite these measures, Nigeria missed its OPEC crude oil production quota in February, producing 1.31 million barrels per day—short of the 1.5 million bpd target. Operational challenges and geopolitical tensions contributed to the shortfall, though Nigeria remains Africa’s leading oil producer. Meanwhile, local refiners are advocating for a domestic crude pricing model that excludes freight and insurance costs to stabilize fuel prices and shield the economy from further global market shocks.
source: The Guardian