Global oil prices rebounded sharply after fresh tensions forced another closure of the Strait of Hormuz, tightening supply expectations and reversing the earlier bearish trend seen in the market following a new escalation involving the seizure of an Iranian vessel by U.S. forces, a development that has quickly unsettled energy markets already dealing with unstable negotiations between both countries.
The incident has reignited fears that the world’s most sensitive oil shipping corridor could face renewed disruption, especially as talks between Iran and the United States continue to swing between cautious engagement and sharp political friction. The uncertainty has pushed traders back into risk pricing after a brief period of optimism.
As at the time of writing 03:50 AM (WAT), Brent crude climbed 5.64% to $95.48 per barrel, while West Texas Intermediate (WTI) crude rose 6.15% to $89.01 per barrel, reflecting a strong rebound in global benchmarks as supply concerns returned to the market.
For Nigeria, the development is expected to translate into immediate pressure on the downstream sector, with depot operators preparing for upward price adjustments today as global replacement costs rise.
There are also strong indications that the Dangote Petroleum Refinery may move to review its ex-depot petrol prices upwards, which would likely trigger a wider adjustment across private depots and fuel marketers.