Oil prices surged to $80 per barrel on Wednesday after United States President Donald Trump declared the interim ceasefire agreement with Iran officially over, following Iranian attacks on commercial vessels in the Strait of Hormuz.
Brent crude for September delivery spiked 7.6 per cent to $80 per barrel, while WTI crude for August delivery climbed to $75.40 per barrel. According to data from oilprice.com, Brent had risen from $72 to $74 on Tuesday before hitting $80 on Wednesday.
Trump dismissed the recently signed memorandum of understanding with Iran as a “waste of time” after Iran struck three commercial vessels transiting the Strait of Hormuz on Tuesday. An LNG tanker was hit on its port side, causing an engine room fire, while a Saudi-flagged supertanker suffered minor damage off the coast of Oman.
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In response, the US Central Command launched airstrikes on more than 80 military targets inside Iran, deploying precision-guided deep-penetrator munitions against coastal areas including Qeshm Island, Sirik, and the port city of Bandar Abbas.
Iran’s Khatam al-Anbiya Central Headquarters subsequently announced the formal closure of the Strait of Hormuz, warning that any further attempts by international commercial shipping to transit the waterway would face direct military intervention.
The Trump administration also revoked a temporary sanctions waiver that had allowed Iran to sell oil and petrochemicals, cutting off a key revenue source for Tehran.
The escalation has rattled global energy markets, with freight rates for tankers in the Gulf surging as shipowners demand higher risk premiums. Refiners in Asia are scrambling to secure alternative supplies from West Africa, the US, and Latin America.
For Nigeria, the development raises fresh concerns about fuel prices, which had been expected to fall after oil dropped from $120 to $71 per barrel in recent weeks. Analysts warn that a sustained rise in crude prices could reverse those gains.

