Nigerian crude prices surged to a 10-day high after escalating military tensions between the United States and Iran sparked fresh concerns over global oil supply disruptions. The renewed conflict in the Middle East pushed Brent crude higher, while Nigeria’s premium oil grades, including Bonny Light, Qua Iboe, and Forcados, traded around $93 per barrel. Market analysts say fears surrounding the security of the Strait of Hormuz, one of the world’s most critical oil shipping routes, are driving prices upward.
The latest surge follows reports of attacks on vessels attempting to navigate the Strait of Hormuz, a key passage for global energy exports. Shipping activity in the area reportedly slowed dramatically as security concerns intensified. With several ships either turning off tracking systems or requiring military assistance to transit the waterway, traders have become increasingly worried about potential supply bottlenecks that could tighten global crude markets and fuel inflationary pressures worldwide.
As tensions continue to rise, the United States has launched a series of strikes targeting Iranian military and maritime infrastructure, saying the operations are aimed at reducing threats to commercial shipping. US Secretary of State Marco Rubio stated that Washington would continue responding to attacks affecting international waterways, while also suggesting divisions may be emerging within Iran’s leadership over the future direction of the conflict. The growing uncertainty has added another layer of volatility to already sensitive global energy markets.
For Nigeria, the crisis is creating unexpected opportunities. European refiners are increasingly turning to Nigerian crude because it can be shipped directly through Atlantic routes, avoiding the risks associated with the Middle East. This has strengthened demand for Nigerian oil grades and increased the premium buyers are willing to pay. At the same time, Nigeria’s crude production has reached its highest level since April 2020, averaging about 1.56 million barrels per day, according to industry data.
Adding further support to the market is the expanding appetite of the Dangote Petroleum Refinery, which has significantly increased its purchases of local crude oil. The refinery reportedly lifted more than 40 million barrels from Nigerian fields within the last two months, creating strong domestic demand alongside rising international interest. As geopolitical tensions continue to reshape global oil flows, Nigeria appears well-positioned to benefit from both its growing production capacity and its strategic advantage as a reliable Atlantic Basin supplier.
source: nairametrics
