Global oil markets extended their rally on Thursday, with crude benchmarks pushing toward the $100 threshold as supply concerns deepen following sustained disruptions in the Strait of Hormuz.
As of 6:25pm (WAT), Brent crude hovered at $99.43 per barrel, up 4.74 per cent, while WTI crude traded at $94.86, gaining 3.91 per cent, reinforcing strong bullish momentum across the energy market.
The rally is being driven by worsening geopolitical tensions involving the United States, Israel and Iran, particularly around the Strait of Hormuz—a critical global oil transit route. The waterway remains effectively shut, with tanker movements significantly below normal levels, tightening global supply.
Recent developments indicate that the United States has enforced restrictions on Iranian oil flows, blocking access to its ports and limiting export capacity. This follows earlier actions by Iran, which had disrupted trade through the same route, imposing levies on vessels and restricting passage, a move that initially triggered a ceasefire and negotiations.
However, with talks now stalled, supply disruptions have persisted. Reports indicate that a comprehensive peace deal between the U.S. and Iran may take up to six months, with key sticking points around nuclear policy, sanctions relief and missile programmes still unresolved.
Industry sources warn that each week without a reopening of the Strait continues to constrain supply, with Gulf exporters unable to move crude, LNG and refined products at scale. Even in the event of a resolution, restoring full operations is expected to take time, prolonging tight market conditions.
Despite this global surge, depot prices across Nigeria have remained relatively calm throughout the week, showing minimal reaction to the international rally. This stability, however, may not hold for long.
With Brent crude now testing the $100 mark and supply risks intensifying, the market is increasingly tilted toward a price adjustment. Analysts say if the current trajectory persists, depot prices may close the week on a high and potentially surge in the coming days, as global pressures begin to filter into the domestic downstream market.