Global oil prices climbed sharply on Wednesday, with Brent crude reaching $95.11 per barrel, its highest level in six weeks, as rising geopolitical tensions in the Middle East sparked fresh concerns over global oil supplies. The surge has reignited fears of increased fuel costs worldwide, with Nigeria among the countries that could feel the impact through higher petrol prices.
Brent crude gained 3.41 percent to settle at $95.11 per barrel, marking its strongest performance since June 11. Meanwhile, US West Texas Intermediate (WTI) also recorded a significant increase, rising by 3.11 percent to $86.96 per barrel. The latest rally reflects growing uncertainty in the global energy market as investors closely monitor developments in one of the world’s most critical oil-producing regions.
The sharp increase in prices follows reports of renewed military escalation involving the United States and Iran. The US military confirmed it had carried out its 11th consecutive night of attacks on Iran, while Kuwait reported intercepting Iranian drones through its air defence systems. Adding to the tension, US President Donald Trump warned that Washington would retaliate by targeting Iranian infrastructure if Tehran attacked ships navigating the strategic Strait of Hormuz.
The situation became even more volatile after the Iran-backed Houthi militia in Yemen threatened to target vessels transporting Saudi oil through the Bab el-Mandeb Strait and announced what it described as a naval blockade of Saudi Arabia. These developments have intensified fears of potential disruptions to key global shipping routes, prompting traders to push oil prices higher amid concerns over supply shortages.
For Nigeria, the spike in global crude prices could have immediate consequences for consumers. Higher international oil prices typically increase the cost of importing refined petroleum products, raising the likelihood of another increase in petrol prices. This comes just days after reports indicated that oil importers were already considering raising ex-depot petrol prices due to the growing cost of imported fuel cargoes, suggesting that motorists and businesses may soon face higher energy expenses if the upward trend continues.
source: The cable
