Global crude oil prices climbed sharply on Thursday, rising to their highest level since September 2025, amid mounting geopolitical tensions in the Middle East and fears of potential supply disruptions.
Brent crude, the international oil benchmark, gained 2.24 percent to trade at $68.88 per barrel as of 12:40 WAT, while United States West Texas Intermediate (WTI) rose by 1.9 percent to $64.41 per barrel.
According to Reuters, the surge in prices is being driven by growing concerns that a possible United States military action against Iran could disrupt oil output from the country, which is the fourth-largest producer within the Organisation of Petroleum Exporting Countries (OPEC). Iran currently produces about 3.2 million barrels of crude oil per day.
Tensions escalated on Monday following reports that US warships had arrived in the Middle East. The vessels were said to have begun moving from the Asia-Pacific region last week as relations between Washington and Tehran deteriorated amid a crackdown on protests in Iran, which the Iranian government claims were infiltrated.
On Wednesday, US President Donald Trump said a massive armada was moving swiftly towards Iran with “great power, enthusiasm, and purpose,” warning that action could follow if Tehran failed to agree to a nuclear deal.
Reuters also reported on Thursday that Trump is considering several options, including targeted strikes on Iranian security forces and leaders, as part of efforts to encourage internal protests that could destabilise the Iranian government. The report cited US officials familiar with the discussions.
Iran has since warned that it would deliver a “strong response” if attacked.
The rise in crude prices places global oil levels above Nigeria’s 2026 budget benchmark of $64.85 per barrel. President Bola Tinubu presented the N58.18 trillion 2026 federal budget to the National Assembly on December 19, describing the oil price benchmark as conservative.
Higher oil prices could offer fiscal relief to oil-producing countries such as Nigeria, although analysts caution that sustained geopolitical instability could also heighten global economic uncertainty.
Melissa Enoch
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