Iran war: Oil Price Hits $100/barrel with fuel prices in Nigeria expected to increase dramatically

Oil prices on Thursday, July 23, hit $100 a barrel following reported attacks on vessels in the Red Sea.

Brent crude, the global oil benchmark, rose by 6.9 percent to $100.6 a barrel, while US West Texas Intermediate (WTI) edged up by 5.63 percent to $91.72 a barrel.

According to a report, the price surge followed attacks by Yemen’s Houthis on two Saudi oil tankers, escalating disruptions to global oil shipping through both the Red Sea and the Strait of Hormuz. Houthi militia confirmed targeting the two Saudi Arabian vessels in a military operation.

One of the two vessels was reported to be ablaze after an assault while sailing in the Red Sea.

The Iran-aligned Houthis opened a new front in the conflict by threatening to target vessels carrying Saudi oil through the Bab el-Mandeb strait, while also announcing a naval blockade against Saudi Arabia.

Meanwhile, the US military carried out an 11th consecutive night of attacks on Iran.

While Nigeria may benefit from higher crude oil export revenues, the development threatens to elevate petrol pump prices locally and reverse recent gains in inflation control. The Dangote Petroleum Refinery increased its ex-gantry petrol price from N1,075 per litre to N1,215 per litre, while also resuming the sale of petrol in naira.