Global oil prices extended their rally on Thursday after Brent crude climbed above $96 per barrel for the first time in more than six weeks, as the United States launched its 12th consecutive night of strikes on Iran, further escalating tensions across the Middle East and fuelling fresh concerns over global crude supplies.
As at the time of writing 06:20 am (WAT), Brent crude traded at $96.01 per barrel, up 2.06 per cent, while West Texas Intermediate (WTI) rose 1.55 per cent to $88.18 per barrel, reflecting heightened geopolitical risk across the global oil market.
The latest rally follows another wave of US airstrikes targeting Iranian military infrastructure, marking the 12th consecutive day of military operations ordered by President Donald Trump. According to the US Central Command (CENTCOM), the strikes were aimed at degrading Iran's ability to threaten commercial shipping and civilian vessels operating in regional waters.
Market sentiment was further shaken after Iran's Islamic Revolutionary Guard Corps claimed an oil tanker caught fire while attempting to navigate a mined shipping route south of the Strait of Hormuz. Reports also indicated that two additional tankers turned back as Tehran warned that vessels would not be permitted to transit the strategic waterway without its coordination.
The conflict widened further after Yemen's Iran-backed Houthi rebels intensified attacks on maritime traffic in the Red Sea, targeting Saudi oil shipments through the Bab el-Mandeb Strait. The group claimed responsibility for attacks on two Saudi tankers, while maritime security reports said the Saudi-flagged tanker Encelia was struck during the assault.
Iranian state media also reported that the Houthis had forced at least nine vessels to abandon planned voyages through the Bab el-Mandeb Strait following the announcement of a naval blockade on Saudi Arabia, raising fresh fears over disruptions to two of the world's most critical oil shipping corridors.
Although the US Energy Information Administration (EIA) reported that commercial crude inventories increased by two million barrels last week, defying expectations of a drawdown, the data failed to ease market concerns. Analysts noted that geopolitical risks continue to outweigh inventory fundamentals, with traders focusing instead on the growing threat to global oil flows.
For Nigeria, the sustained rise in crude oil prices presents a mixed outlook. Higher international prices could improve crude export earnings and government revenues, but they also increase the replacement cost of imported petroleum products, potentially sustaining pressure on domestic fuel prices despite the country's expanding local refining capacity.
Energy analysts say the market will remain highly volatile until there is a diplomatic breakthrough. With military operations continuing across the Middle East and shipping disruptions spreading from the Strait of Hormuz to the Bab el-Mandeb Strait, the risk premium in crude prices is expected to remain elevated, keeping Brent above the $95-$96 per barrel range in the near term.