Global oil prices have surged above $100 per barrel for the first time since late July as intensifying military tensions between the United States and Iran fuel fresh concerns over the stability of crude oil supplies from the Middle East. Brent crude, the international benchmark, climbed to about $101.20 per barrel, gaining more than three per cent, while West Texas Intermediate traded close to $96 per barrel.
The sharp rally followed a major escalation in military exchanges between Washington and Tehran. The US Central Command said American forces destroyed five Iranian crude oil carriers—four in the Gulf of Oman and another near Kharg Island—after Iran’s Islamic Revolutionary Guard Corps launched ballistic missile attacks on a US Navy warship. Iran subsequently fired missiles towards US forces at Jordan’s al-Azraq Air Base, with Jordanian authorities reporting that 18 of the 20 missiles were intercepted.
Market fears have been further amplified by attacks on energy infrastructure in the region. Houthi attacks on energy facilities in southern Saudi Arabia reportedly forced the kingdom to suspend operations at several sites, adding another layer of uncertainty to an already fragile global oil market. With investors increasingly worried that the conflict could disrupt production, shipping routes and crude exports, oil prices have responded sharply.
For Nigeria, the surge presents a mixed picture. On one hand, higher crude prices could provide a major boost to government revenue, particularly because Brent is now significantly above the $64.85 per barrel benchmark used in the 2026 Federal Government budget. If elevated prices persist, Nigeria could earn more from oil royalties, taxes and other petroleum-related revenues, potentially strengthening government finances.
But while higher oil prices may improve government earnings, Nigerian consumers are already feeling the pressure at the pump. The increase in global crude prices has coincided with a rise in petrol prices, which moved from an average of about ₦830 per litre in February to ₦1,310 as of the time of the report. The latest development therefore puts Nigeria in a familiar position: benefiting from higher oil earnings while simultaneously facing increased fuel costs and the wider economic pressure that comes with expensive crude.
source: punch
