Global oil markets came under renewed pressure on Thursday as crude oil prices surged close to the $100-per-barrel mark following escalating tensions between the United States and Iran. The renewed outbreak of hostilities has reignited fears of prolonged supply disruptions across the Middle East, one of the world’s most important oil-producing regions, triggering sharp gains in energy prices and raising concerns over the global economic outlook.
Market data showed Brent crude climbing by 4.68% to trade at $98.47 per barrel, while U.S. benchmark West Texas Intermediate (WTI) rose by $3.28, reaching $90.11 per barrel at the time of reporting. The latest price rally follows the collapse of the ceasefire between the U.S. and Iran, with fresh military exchanges adding uncertainty to global energy markets. Investors are increasingly worried that the conflict could further disrupt oil exports from the region and tighten global supply.
The situation has become more complicated with Iran maintaining the closure of the Strait of Hormuz, a critical shipping route through which a significant portion of the world’s crude oil passes daily. At the same time, Iran-backed Houthi militants have intensified missile and drone attacks on commercial vessels in the Red Sea, including Saudi oil tankers. These developments have raised fresh concerns over the security of another strategic maritime route, the Bab el-Mandeb Strait, prompting some shipping companies to reroute vessels and increasing fears of supply shortages that continue to push oil prices higher.
Beyond the energy market, the crisis is beginning to influence economic policy across several countries. In Nigeria, the Central Bank of Nigeria (CBN) recently maintained its Monetary Policy Rate (MPR) at 26.5%, citing growing global uncertainties linked to the renewed Middle East conflict. CBN Governor Olayemi Cardoso explained that the apex bank adopted a cautious approach to help sustain progress in moderating inflation, stabilizing the foreign exchange market, and preserving macroeconomic stability amid heightened geopolitical risks.
For Nigeria, the continued rise in crude oil prices presents both opportunities and challenges. While higher oil prices could boost government revenue as an oil-producing nation, they also risk driving up transportation costs, import expenses, and food prices, especially for essential goods. Although Nigeria’s headline inflation eased slightly to 15.91% in June 2026, food inflation has already shown signs of increasing. Analysts warn that if the Middle East conflict persists and oil prices continue their upward trend, households and businesses could face renewed inflationary pressures in the months ahead, adding fresh strain to the country’s economic recovery.
source: nairametrics
