Global crude oil prices rebounded on Tuesday after fresh United States military strikes on Iranian targets raised concerns over renewed hostilities in the Middle East and prolonged disruptions to international oil supplies.
Brent crude oil, the international oil benchmark for Nigerian oil, gained $1.84 to $106.61 per barrel, while US West Texas Intermediate (WTI) rose $1.60 to $98.06 per barrel as of 08:44 a.m. Nigerian time.
The increase followed a sharp decline on Monday when Brent crude plunged 7.63% to settle at $104.77 per barrel, while WTI dropped 7.36% to $96.46 per barrel.
Monday’s selloff was driven by growing optimism that diplomatic negotiations involving Iran, Qatar and the United States could produce an agreement to end the conflict and restore normal oil shipments through the Strait of Hormuz.
However, market sentiment shifted after reports emerged that US forces had attacked Iranian targets on Qeshm Island, near the strategic shipping route.
US officials described the strikes as defensive operations intended to prevent Iranian forces from threatening commercial vessels passing through the Strait of Hormuz.
The waterway, which previously handled approximately one-fifth of global crude oil and natural gas supplies, has experienced substantial disruptions since the conflict began in February.
Reduced shipping activity through the route has constrained international energy supplies, increased transportation risks and contributed to higher petroleum prices.
Despite the latest military developments, diplomatic efforts to resolve the conflict remain ongoing.
Iranian officials confirmed that communication with Washington was continuing following several days of negotiations involving Qatari mediators.
However, the discussions have yet to produce a breakthrough, with disagreements over sanctions, security arrangements and other conditions delaying a potential settlement.
The renewed uncertainty has forced oil traders to reassess the likelihood of an early restoration of Middle Eastern energy exports.
Market analysts noted that reports of fresh military activity have restored some geopolitical risk to crude oil prices, although further sustained gains may depend on whether the conflict causes additional disruptions to production facilities or shipping operations.
For Nigeria, the recovery in crude oil prices could support petroleum export earnings and foreign exchange inflows, given the country’s dependence on crude oil as a major source of external revenue.
Higher prices could also improve the value of crude shipments and strengthen government oil revenue, provided production volumes and export operations remain stable.
However, sustained increases in international petroleum prices could raise transportation, shipping and energy costs, potentially adding to inflationary pressures.
The impact on domestic fuel prices will also depend on local refining capacity, crude sourcing arrangements, exchange rates and competition in the downstream petroleum market.
Investors are expected to monitor developments in the Middle East closely, particularly the outcome of diplomatic negotiations and the security situation around the Strait of Hormuz.
A successful agreement could ease supply concerns and reduce the geopolitical premium currently supporting crude prices, while further military escalation could trigger another round of volatility in international energy markets.
