The US West Texas Intermediate (WTI) crude mirrored the rally, rising over 9 percent to $73.06 per barrel. Analysts say the gains are being driven by renewed uncertainty over supply routes in the region.
The latest spike follows a series of military actions over the weekend. US and Israeli airstrikes targeted Iranian positions, killing Iran’s supreme leader, Ayatollah Ali Khamenei, and armed forces chief of staff Abdolrahim Mousavi. Iran retaliated with multiple missile launches, heightening fears of a wider regional conflict. Casualties in the strikes reportedly included Khamenei’s daughter, grandchild, daughter-in-law, and son-in-law.
Shipping companies have already taken precautions. Maersk, Mediterranean Shipping Company (MSC), and CMA CGM suspended sailings through the Strait of Hormuz and the Suez Canal-Bab el-Mandeb corridor, key chokepoints for global energy trade. According to Reuters, roughly a fifth of the world’s seaborne oil and 20 percent of liquefied natural gas (LNG) flow through the Strait of Hormuz.
Economists warn that sustained increases in crude prices could reignite inflationary pressures worldwide, acting as an effective tax on businesses and consumers and potentially weakening demand.
For Nigeria, the surge has particular significance: Brent’s current levels are well above the country’s proposed 2026 budget benchmark of $64.85 per barrel, highlighting potential fiscal windfalls but also signaling volatility risks.