Global oil prices climbed toward the $ 100-per-barrel mark on Thursday as renewed fighting between the United States and Iran heightened fears of prolonged supply disruptions across the Middle East, sending energy markets sharply higher.
Checks by Nairametrics on July 23 showed that Brent crude was trading at $98.47 per barrel, representing a 4.68% increase, while West Texas Intermediate (WTI) crude gained $3.28 to trade at $90.11 per barrel at the time of reporting.
The latest rally follows the collapse of the ceasefire between the United States and Iran, with hostilities resuming across the region.
The renewed conflict has been compounded by Iran’s continued closure of the Strait of Hormuz, one of the world’s busiest oil transit routes, while Iran-backed Houthi militants have intensified attacks in the Red Sea, threatening another critical shipping corridor used to transport crude oil and other commodities from Saudi Arabia and the wider Gulf region.
What they are saying
The renewed attacks by Yemen’s Iran-backed Houthi movement have opened another front in the conflict, further unsettling global energy markets already grappling with disruptions in the Strait of Hormuz.
- The group claimed responsibility for missile and drone attacks targeting two Saudi oil tankers in the Red Sea, marking its first assault on commercial shipping in several months.
- Saudi authorities confirmed that one refined-products tanker came under attack near the country’s southern coast, while the Houthis said they also targeted a crude oil carrier.
Although the extent of the damage remains unclear, the attacks have heightened concerns over the security of the Bab el-Mandeb Strait, another vital maritime chokepoint linking the Red Sea to the Gulf of Aden. The threat has prompted some shipping companies to divert vessels away from the area, adding to fears of tighter global oil supplies and pushing crude prices higher.
More insights
The renewed conflict is already influencing economic policymaking beyond the Middle East, with central banks becoming increasingly cautious over the inflationary risks associated with higher energy prices.
CBN Governor Olayemi Cardoso said the committee decided to leave the benchmark interest rate unchanged after reviewing both domestic and global economic conditions, including the renewed hostilities in the Middle East.
- He noted that “global uncertainties have heightened due mainly to the renewed hostilities in the Middle East,” adding that “maintaining a cautious policy stance remains appropriate” as the apex bank seeks to preserve recent gains in inflation moderation, stabilise the foreign exchange market and safeguard macroeconomic stability.
The CBN’s decision reflects growing concerns among policymakers that sustained increases in global oil prices could trigger another round of imported inflation, particularly for fuel-importing economies.
What you should know
The renewed surge in crude oil prices could reverse recent improvements in Nigeria’s inflation outlook by raising the cost of transporting goods, importing agricultural inputs such as fertilisers and increasing logistics expenses across supply chains.
Although Nigeria’s headline inflation eased marginally to 15.91% in June 2026 from 15.93% in May, the latest figures already point to renewed pressure on household expenses. Food inflation accelerated to 3.75% in June, compared with 2.98% in May, suggesting that food prices remain vulnerable despite the broader moderation in inflation.
Higher international oil prices resulting from the Middle East conflict could further increase transportation and distribution costs, potentially feeding into the prices of staple foods and other essential goods in the coming months.
