Brent crude tops $105 as Iran conflict heightens global oil supply fears
Global oil prices surged on Monday as tensions in the Middle East intensified, pushing Brent crude above $105 per barrel amid growing concerns about disruptions to global supply. The rally comes as the conflict involving the United States, Israel and Iran entered its third week, heightening uncertainty across international energy markets.
Brent crude futures rose by $2.01, or 1.95 per cent, to $105.15 per barrel, while U.S. West Texas Intermediate (WTI) crude climbed $1.61, or 1.63 per cent, to $100.32 per barrel. Both benchmarks have surged more than 40 per cent this month, reaching their highest levels since 2022 as geopolitical tensions continue to shake investor confidence.
The sharp rise in prices follows attacks involving U.S. and Israeli forces against Iran, prompting Tehran to halt shipping through the Strait of Hormuz — one of the world’s most vital oil transit routes. The strategic waterway handles roughly one-fifth of global crude shipments, meaning any prolonged disruption could significantly affect global supply chains and energy markets.
Further tensions emerged after Iranian drones reportedly struck a key oil terminal in Fujairah in the United Arab Emirates, although oil loading operations have since resumed. Meanwhile, the International Energy Agency (IEA) announced plans to release more than 400 million barrels of oil reserves into the market in a record effort to stabilize supply and calm surging prices.
The rising oil prices are also sparking concern in Nigeria, where fuel costs are already climbing. The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Federal Government to reinvest windfall revenues from higher oil prices into gas infrastructure. At the same time, the Nigeria Labour Congress (NLC) has called for urgent intervention as petrol prices rise to between N1,230 and N1,300 per litre nationwide, warning that households and businesses are under increasing financial pressure.
source: nairametrics