Global oil prices surged on Wednesday as renewed military confrontation between the United States and Iran intensified concerns over potential disruptions to crude exports from the Middle East, one of the world's most critical energy-producing regions.
As at the time of writing 07:38 (WAT), Brent crude rose 1.91% to $93.20 per barrel, while U.S. West Texas Intermediate (WTI) gained 2.14% to $90.09 per barrel, extending gains as traders reacted to growing geopolitical risks around the Strait of Hormuz.
Market sentiment turned sharply bullish after the United States launched strikes on Iranian military targets following an incident involving a U.S. Apache helicopter near the strategic waterway. Iran subsequently reported retaliatory actions targeting U.S. military assets in Bahrain, Kuwait and Jordan, raising fears of a broader regional escalation.
The latest developments have refocused attention on the Strait of Hormuz, a vital maritime corridor through which a significant share of global oil exports passes daily. Any threat to shipping activities in the area could tighten global supply and trigger further upward pressure on energy prices.
Analysts noted that while oil markets have yet to price in a prolonged supply disruption, investors are increasingly adding a geopolitical risk premium amid uncertainty over the next phase of the conflict.
Beyond the oil market, the heightened tensions weighed on investor sentiment across Asia, with major stock indices posting declines as traders sought safe-haven assets.
For energy-importing economies, sustained increases in crude prices could translate into higher fuel and transportation costs. In Nigeria, however, the impact may be partly moderated by increasing domestic refining capacity, particularly from the Dangote Refinery, which has reduced the country's dependence on imported petroleum products.
Market participants will continue to monitor developments in the Gulf region, with particular focus on the security of the Strait of Hormuz and any further military actions that could influence global energy supply flows.