Oil Prices Rise Nearly 3% After US Strikes Iranian Forces Inside Strait of Hormuz
- Global crude oil prices jumped nearly 3% on Monday after the US struck Iranian Revolutionary Guard forces inside the Strait of Hormuz
- Iran responded by firing ballistic missiles and drones at US military installations in Jordan, deepening fears over oil supply routes
- Vessel traffic through the Strait of Hormuz dropped to about five ships per day over the weekend, raising fresh shipping and freight concerns
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Global crude oil prices climbed sharply on Monday morning after the United States carried out a military strike on Iranian forces stationed on Larak Island inside the Strait of Hormuz, reigniting fears of a major disruption to one of the world's most critical oil shipping routes.
By 6:13 am West Africa Time, Brent crude had risen 2.45% to $90.26 per barrel, while West Texas Intermediate gained 2.31% to trade at $85.33 per barrel.
Source: Instagram
Washington said the strike targeted Iranian Revolutionary Guard units that were preparing to launch rockets and lay sea mines across the strategic waterway. Iran responded by firing ballistic missiles and drones at US military positions in Jordan.
Shipping Through the Strait Under Pressure
The exchange has raised alarm among oil traders over the safety of the Strait of Hormuz, which handles a significant share of global crude exports. Commodity vessel movements through the waterway fell to around five ships per day over the weekend, well below pre-war levels.
The UK Maritime Trade Operations also reported that a tanker travelling through the Strait was struck by an unidentified projectile.
The US Central Command said that as of August 30, 83 commercial vessels had been redirected, three disabled, and two boarded as part of its blockade of Iranian ports.
Monday's rally only partially reversed the losses from the previous week, when both Brent and WTI prices dropped more than 4% as markets weighed the possibility of easing tensions and a return to normal oil flows.
What the Price Surge Means for Nigeria
For Nigeria, a sustained rise in crude prices could translate into higher government oil revenues and stronger foreign exchange earnings.
The country remains heavily dependent on oil exports, and price movements on global markets directly affect its budget performance.
Source: UGC
However, a prolonged blockade or disruption in the Strait of Hormuz could push up tanker freight rates and insurance premiums, raising the cost of sourcing petroleum products from alternative suppliers.
If those higher logistics costs feed through to domestic supply chains, they could eventually put upward pressure on fuel prices within Nigeria.
Traders are watching closely to determine whether the latest round of US-Iran military exchanges stays limited in scope or signals a wider escalation that could further restrict Gulf crude exports and tanker access through the Strait of Hormuz.
Dangote refinery increases petrol price
Earlier, Legit.ng reported that Dangote Petroleum Refinery raised its Premium Motor Spirit gantry price by N65 on August 29, bringing the figure to N1,265 per litre and marking the third upward adjustment in less than two weeks.
The refinery had previously moved its PMS price from N1,165 to N1,185 per litre on August 20, then again to N1,200 on August 25.
Taken together, the three increases added N100 per litre to the refinery's benchmark price in nine days.
Source: Legit.ng
