Global crude oil prices surged by nearly four per cent on Monday after a fresh exchange of missile attacks between Iran and Israel reignited concerns over supply disruptions in the Middle East, pushing Brent crude closer to the $100 per barrel mark.
As of the time of writing 05:27 a.m. (WAT), Brent crude was trading at $96.66 per barrel, up 3.83 per cent, while U.S. West Texas Intermediate (WTI) rose 3.69 per cent to $93.88 per barrel, extending gains recorded at the close of the previous trading session.
The latest rally followed reports that Iran launched ballistic missiles toward Israel on Sunday night, prompting retaliatory strikes by Israeli forces on targets in western and central Iran. Although Israeli authorities said all incoming missiles were intercepted without casualties, traders reacted swiftly amid fears that the renewed hostilities could derail ongoing diplomatic efforts and further threaten stability around the Strait of Hormuz, a critical artery for global oil exports.
Market sentiment has remained highly sensitive to developments in the region in recent weeks, with analysts warning that any prolonged disruption to shipping routes or delays in a diplomatic resolution could tighten global crude supplies. The Strait of Hormuz handles a significant share of the world's seaborne oil trade, making it a key focal point for energy markets.
The latest price jump reflects growing concern among investors that the fragile ceasefire efforts and U.S.-Iran negotiations could suffer a setback. While diplomatic channels remain open, the renewed military confrontation has increased geopolitical risk premiums across the oil market, providing fresh support for crude prices.
For oil-producing nations such as Nigeria, stronger crude prices could boost export earnings and government revenues. However, sustained increases may also raise concerns over higher refined product costs globally, particularly if tensions continue to escalate and keep supply uncertainty at the forefront of market trading.