Global crude oil prices remained elevated on Tuesday as geopolitical tensions in the Middle East continued to disrupt supply flows.
Brent crude oil, the international benchmark for Nigerian crude oil, traded above $112 per barrel after briefly surging past $114, while U.S. West Texas Intermediate hovered around $104 per barrel.
The market remains supported by persistent concerns over supply disruptions linked to the ongoing conflict involving the United States, Israel and Iran.
The escalation has significantly impacted the Strait of Hormuz, a critical transit route for global energy shipments responsible for roughly one-fifth of worldwide oil and gas flows.
Disruptions in the corridor have tightened supply expectations and amplified price volatility across energy markets.
Earlier in the week, oil prices jumped nearly 6 percent following renewed attacks on shipping infrastructure and energy facilities in the Gulf region, reinforcing fears of prolonged supply constraints.
Despite the recent surge, prices have shown signs of easing as investors weigh the possibility of partial restoration of shipping routes and increased military efforts to secure oil transit.
However, analysts caution that any sustained recovery in supply remains uncertain given the fragile security situation.
In parallel, inventory data signals tightening fundamentals. U.S. crude stockpiles are estimated to have declined in the most recent week, alongside drops in gasoline and distillate inventories, indicating strong demand and constrained supply conditions.
Global oil markets have also been influenced by policy responses from producers. While OPEC+ has agreed to modest output increases, analysts view the move as largely symbolic given that logistical disruptions, rather than production capacity, remain the primary constraint on supply.
The current price environment reflects a market driven more by geopolitical developments than underlying supply-demand fundamentals.
With tensions still unresolved and shipping risks lingering, crude oil is expected to remain above $100 per barrel in the near term.
For import-dependent economies, the sustained rally poses inflationary risks and pressure on foreign exchange reserves, while producers stand to benefit from elevated revenue levels.
Overall, the oil market remains highly sensitive to developments in the Middle East, with any escalation or de-escalation likely to trigger sharp price movements in the days ahead.
