Crude oil prices surged on Thursday toward $84 a barrel, the highest level this year, outpacing Nigeria’s 2026 budget benchmark of $64.85 per barrel as escalating tensions in the Middle East disrupted crude flows to key importers.
Brent crude, the global oil benchmark, jumped 12 percent over the first three days of the week, while West Texas Intermediate traded near $78 per barrel.
Okay News reports that the market’s principal concern remains the Strait of Hormuz, with traffic through the waterway — including oil and gas tankers — all but halted following US and Israeli strikes on Iran. The effective closure has bottled up crude supplies from Iran and other Persian Gulf producers, forcing some to begin shutting in output. Analysts warn that further strikes on oil infrastructure or sustained disruption could trigger additional price spikes.
Higher prices boost Nigerian government revenue, even as the country’s production has remained below its OPEC quota. However, the surge has consequences for domestic fuel consumption, with major oil marketers adjusting prices upward. Dangote Refinery increased its gantry price by N100, bringing the ex-depot rate to N874 per litre from N774, while the Nigerian National Petroleum Company Limited raised pump prices in Abuja to N960 per litre from N875.
Goldman Sachs Group Chief Executive Officer David Solomon noted significant uncertainty about the direction of the Middle East conflict and how it will be resolved. Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova Pte, stated that if even one more successful strike occurs on oil tankers or infrastructure, prices could spike sharply again. China, the top importer, has told its largest refiners to suspend exports of diesel and gasoline to prioritize domestic needs as the crisis deepens. This oil price surge reflects escalating geopolitical risks and their direct impact on global energy markets.
