Oil prices surged in early trading after ceasefire talks in Pakistan collapsed, wiping out recent market optimism and pushing traders back into risk-driven positions amid fresh fears of supply disruption.
As at the time of writing 05:25 AM (WAT), Brent crude stood at $102.20 per barrel, up 7.36%, while WTI crude climbed to $104.90, gaining 8.59%, reflecting a sharp and decisive market reaction to renewed geopolitical uncertainty.
The failed negotiations have been compounded by a direct threat by U.S. President Donald Trump to impose a blockade on the Strait of Hormuz, a critical oil transit route.
The possibility of disruption along that corridor has immediately tightened supply expectations and forced prices higher.
For Nigeria’s downstream market, the implication is clear. Depot prices are expected to rise as marketers respond to higher international benchmarks and increasing replacement costs, reversing the brief easing recorded earlier in the week.
With crude prices climbing and supply risks intensifying, the pressure is now firmly on the domestic market, and unless tensions ease quickly, higher depot and retail petrol prices are imminent.