Global oil prices held firm on Thursday, with Brent crude climbing above $105 per barrel as supply concerns intensified over the worsening standoff in the Strait of Hormuz.
As at the time of writing 07:15 AM (WAT), Brent crude traded at $105.50 per barrel, up 0.38%, while West Texas Intermediate (WTI) edged higher to $95.93 per barrel, gaining 0.08%.
The latest price rally reflects growing market anxiety over the security of global crude flows. The Strait of Hormuz, which handles nearly 20 per cent of the world’s seaborne oil trade, remains under severe operational strain as tensions between Iran and the United States continue to disrupt maritime traffic.
With vessel movements restricted and shipping risks rising, traders are increasingly building a geopolitical risk premium into crude prices. The market is no longer reacting to headlines alone; it is responding to the real possibility of prolonged supply dislocation.
Brent’s return above $105 signals tightening fundamentals in the physical market, particularly as buyers move to secure alternative cargoes and protect against further disruptions. If the crisis persists, supply chains across key consuming regions could come under additional pressure.
For Nigeria and other import-dependent economies, sustained strength in crude prices could translate into higher refined product costs, increased landing expenses and renewed pressure across the downstream petroleum market.
Until normal shipping resumes through Hormuz, oil prices are likely to remain elevated, with volatility continuing to define the near-term outlook.