Crude oil price surged on Monday to $79 a barrel — the highest in more than a year, outpacing Nigeria’s budget benchmark.
Brent crude, the global oil benchmark, rose over 9 percent to $79 a barrel for the first time since August 2024 — but signals a marginal drop from an early trading high of $82.
The US West Texas Intermediate also rose over 9 percent to $73.06 a barrel.
The development came amid worsening geopolitical tensions in the Middle East.
On Saturday, US-Israeli strikes on Iranian targets killed Ayatollah Ali Khamenei and Abdolrahim Mousavi, Iran’s supreme leader, and armed forces chief of staff, respectively.
Khamenei’s daughter, grandchild, daughter-in-law and son-in-law were also killed in the military operation.
In response, Iran launched waves of missiles across the region, threatening to pull its neighbours into the escalating conflict.
Maersk, Mediterranean Shipping Company (MSC), and CMA CGM have halted sailings through the Strait of Hormuz and the Suez Canal-Bab el-Mandeb corridor amid escalating security threats in the Middle East.
According to Reuters, about a fifth of the world’s seaborne oil trade and 20 percent of its liquefied natural gas (LNG) pass through the Strait of Hormuz.
The publication said a prolonged surge in oil prices could reignite global inflationary pressures and effectively act as a tax on businesses and consumers, potentially weakening demand.
Meanwhile, the current oil price has overshot Nigeria’s budget benchmark, trading above the proposed 2026 reference price of $64.85 per barrel.
