WTI crude oil futures skyrocketed over 11 per cent on Friday, breaching $112 per barrel—the highest level in nearly four years—as traders reassessed supply risks from the
intensifying war in the Persian Gulf. Brent crude followed suit, climbing more than seven per cent above $109 per barrel, its highest mark since 2022.
The rally gained steam after US President Trump vowed to ramp up attacks on Iran’s infrastructure in coming weeks unless Tehran accepts American ceasefire terms. Iran hit back with defiant rhetoric, dashing earlier hopes of de-escalation. Prices had briefly dipped on reports of Oman and Iran coordinating a toll for tankers navigating the Strait of Hormuz chokepoint, but that optimism evaporated quickly.
Dated Brent benchmarks, a key gauge for physical oil cargoes, surged past $140 per barrel—the highest since 2008—signaling acute supply fears. The UK is convening talks with dozens of countries to safeguard the vital shipping route, while OPEC+ mulls a potential output hike. However, any extra barrels are unlikely to ease near-term pressures.
For Nigeria, Africa’s top oil producer, the spike raises import costs for refined products and could boost revenues from crude sales, though global volatility threatens downstream stability amid ongoing local refining challenges.
Credit: Leadership