Global oil prices climbed sharply on Thursday, edging closer to the $100-per-barrel mark as the escalating conflict between the United States and Iran heightened concerns over crude supplies from the Middle East and the safety of one of the world’s busiest shipping corridors.
Brent crude futures surged more than 3 percent to trade at $97.59 per barrel, while U.S. West Texas Intermediate (WTI) crude rose to $89.48 per barrel. The latest rally has pushed benchmark oil prices up by about 25 percent since the beginning of July 2026, reflecting mounting anxiety in global energy markets.
The sharp increase follows reports of an intensifying military confrontation between Washington and Tehran, with both sides exchanging threats that have raised fears of wider regional instability. Investors are particularly concerned about the possibility of disruptions to oil exports through the Strait of Hormuz, a strategic waterway that carries nearly a fifth of the world’s seaborne crude oil shipments.
Energy traders reacted swiftly to the growing geopolitical risk, sending crude prices to their highest levels in months as markets priced in the potential for supply interruptions from key oil-producing nations in the Gulf.
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Analysts say any sustained disruption to shipping routes in the Middle East could significantly tighten global crude supplies, especially at a time when demand remains resilient across major economies.
The latest spike has also renewed concerns over inflation, with higher oil prices expected to increase transportation and manufacturing costs worldwide. Economists warn that prolonged energy price increases could complicate monetary policy decisions by central banks already battling persistent inflationary pressures.
For oil-importing nations such as Nigeria, despite being an oil producer, the price rally presents mixed implications. While higher crude prices could boost government revenues and foreign exchange earnings from exports, they may also increase the cost of importing refined petroleum products and place additional pressure on domestic fuel prices if global market trends persist.
Airlines, logistics firms and manufacturing companies are also expected to face higher operating costs should crude prices continue their upward trajectory. Several international carriers have already begun reviewing fuel hedging strategies to cushion the impact of volatile energy markets.
Financial markets remained cautious as investors monitored diplomatic developments, with analysts noting that further military escalation could push Brent crude beyond the $100-per-barrel threshold in the coming days.
Market observers say attention is now focused on developments in the Gulf region, where any disruption to shipping lanes or oil infrastructure could trigger another round of price increases.
Despite the volatility, energy experts maintain that diplomatic efforts to de-escalate tensions remain the most critical factor in restoring confidence to global oil markets and preventing a prolonged supply shock.

