Oil Hits $100 As US-Iran Hostilities Send Global Prices Soaring

Global crude oil prices surged past the $100 per barrel mark on Wednesday as hostilities between the United States and Iran intensified, raising fresh concerns over the impact of the escalating Middle East conflict on fuel prices and the global economy.

The latest spike followed fresh military attacks involving Iranian crude carriers and United States forces in Jordan, adding to fears of further disruption to global oil supplies.

The United States said its forces had destroyed five more Iranian crude oil tankers after Iran’s Islamic Revolutionary Guard Corps (IRGC) launched an attack on a U.S. Navy warship with ballistic missiles.

The development came barely days after U.S. forces reportedly struck three other oil tankers following an earlier IRGC attack on two American warships.

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Although crude prices later eased slightly from their session highs, they remained significantly elevated amid growing uncertainty over the security of oil shipments and supply routes in the region.

As of Wednesday afternoon, West Texas Intermediate (WTI) crude was trading at about $95.73 per barrel, while Brent crude stood at $100.77 per barrel.

The United States Central Command (CENTCOM) confirmed late Tuesday that American forces had destroyed five Iranian crude oil carriers, describing the operation as a response to the IRGC’s missile attack on a U.S. Navy vessel.

CENTCOM said four of the vessels — M/T Kaviz, M/T Charminar, M/T Horizon 1 and M/T Riesco — were destroyed in the Gulf of Oman.

The renewed confrontation has heightened concerns in oil-importing countries, particularly those already grappling with elevated energy costs.

In Nigeria, the development is coming amid persistent pressure on the downstream petroleum market, with consumers and businesses already facing steep increases in the cost of petrol and diesel.

A litre of Premium Motor Spirit (PMS), popularly known as petrol, is currently selling for between N1,300 and N1,400 in parts of the country, while diesel prices have risen to around N2,000 per litre.

The fresh rise in international crude prices could further complicate Nigeria’s fuel-price situation, particularly if the conflict persists and begins to significantly affect global crude supply and shipping.

Higher crude prices could also have wider implications for transportation, electricity generation, manufacturing, food production and other sectors that depend heavily on petroleum products.

Analysts are expected to closely monitor the situation as further military escalation between Washington and Tehran could push oil prices even higher, depending on the extent of disruption to global supplies.

For Nigeria, which remains heavily dependent on petroleum products for transportation and industrial activities, prolonged high international oil prices could present both opportunities and risks, depending on domestic production levels, refining capacity and the cost of refined petroleum products.

The situation also underscores the vulnerability of the global energy market to geopolitical tensions, particularly conflicts involving major oil-producing countries and strategic shipping routes.