Global oil prices surged to a one-month high Tuesday, with Brent crude climbing roughly 11% since Sunday to settle near $84.40 a barrel, as renewed US-Iran hostilities intensified fears over Strait of Hormuz shipping disruptions.
The rally followed a third consecutive night of US strikes on Iran and Tehran’s announcement that it was closing the strait, through which roughly one-fifth of global crude supplies pass. Ship-tracking data shows Hormuz traffic has fallen more than 50% week-on-week.
Prices eased slightly after President Trump abandoned a proposed 20% fee on ships transiting the strait, saying Gulf states would instead make “massive” investments in the US. Analysts warn the emergency reserve buffer that had cushioned earlier price shocks is now largely depleted, raising the risk of sharper swings ahead.
For Nigeria, the price surge coincides with the country’s strongest oil output in over six years — NUPRC data shows production rose 2.3% to 1.74 million barrels per day in June — raising hopes for stronger export earnings if the rally holds, though analysts don’t expect this to affect local pump prices significantly.
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