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Crude oil prices climbed above $90 per barrel on Monday after the United States and Iran resumed military strikes over the Strait of Hormuz, raising concerns about disruptions to global oil supplies.
Brent crude futures rose $2.21, or 2.51 per cent, to $90.31 per barrel as of 0436 GMT. US West Texas Intermediate crude gained $1.83, or 2.19 per cent, to $85.23.
The escalation began on Sunday when the US struck Iranian rocket launchers on Larak Island in the Strait of Hormuz. Iran retaliated early Monday with missile and drone attacks on US bases in Jordan, according to state-run IRNA.
The US military said it targeted the launchers after Iranian Revolutionary Guard Corps forces were observed preparing to deploy sea mines into the waterway.
“US forces are monitoring the area closely and remain prepared to protect the free flow of commerce through this essential waterway,” Captain Tim Hawkins, a spokesperson for US Central Command, said.
The renewed hostilities reversed gains made last week after Iran and Oman announced a proposed framework on August 25 to restore shipping through the Strait. The plan included a temporary joint navigational corridor and a joint project to clear mines.
That optimism had pushed Brent down to $86.28 per barrel on August 26, and WTI to $80.29.
The latest escalation also comes weeks after President Donald Trump announced “economic warfare” against Iran on August 20, warning countries and businesses dealing with Tehran of severe consequences.
*Implications for Nigeria*
For Nigeria, a sustained rise in crude prices could boost government revenue and foreign exchange earnings. The 2026 budget is based on a benchmark of $64.85 per barrel, meaning Brent trading above $90 is significantly higher.
However, higher global oil prices could also increase pressure on domestic fuel and transportation costs. During the last period of elevated prices, petrol rose above N1,200 per litre in some Nigerian markets.
The National Bureau of Statistics said headline inflation eased to 15.43 per cent in July 2026 from 15.91 per cent in June. But food inflation rose to 20.31 per cent year-on-year from 17.52 per cent, the highest in 10 months.
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