Global oil prices have surged to their highest level in more than a year, with Brent crude rising more than nine per cent on Monday to 79 dollars a barrel. The increase pushes prices above Nigeria’s 2026 budget benchmark of 64 dollars 85 cents per barrel.
US West Texas Intermediate also climbed more than nine per cent to 73 dollars six cents a barrel. The gains follow escalating geopolitical tensions in the Middle East after US and Israeli strikes on Iranian targets on Saturday killed Iran’s Supreme Leader, Ayatollah Ali Khamenei, and the armed forces chief of staff, Abdolrahim Mousavi.
Iran responded with missile attacks across the region, raising fears of a wider conflict. Major shipping firms, including Maersk, Mediterranean Shipping Company, and CMA CGM, have suspended sailings through the Strait of Hormuz and the Suez Canal Bab el Mandeb corridor because of security concerns.
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Around a fifth of global seaborne oil and 20 per cent of liquefied natural gas pass through the Strait of Hormuz, and analysts warn that sustained high prices could increase inflationary pressures worldwide.
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