Oil prices climbed above $87 per barrel on Tuesday, reaching their highest level in weeks as renewed military confrontation between the United States and Iran over the Strait of Hormuz heightened fears of prolonged energy disruptions.
Brent crude, the international benchmark, rose as much as 5% to $87.55 per barrel before easing to around $86.73, extending Monday’s near-10% surge. The latest rally comes just weeks after oil prices retreated following a preliminary peace agreement between the US and Iran.
Renewed Conflict
US forces launched another round of strikes on Iranian targets overnight, the sixth wave of attacks since President Donald Trump resumed military operations last week after Iran allegedly attacked commercial tankers transiting the waterway.
The conflict intensified further after Trump announced plans to reinstate a naval blockade against Iran and impose a 20% fee on cargo moving through the contested strait, raising concerns over higher shipping costs and reduced oil flows from the Gulf.
Analysts warn that any prolonged disruption to shipping through the Strait of Hormuz could push oil prices even higher, increasing fuel costs worldwide, reigniting inflationary pressures and slowing economic growth across both developed and emerging economies.
For major oil-importing countries such as Nigeria, sustained increases in global crude prices could translate into higher domestic fuel prices, increased transportation costs and renewed pressure on inflation, despite the country’s status as Africa’s largest crude producer.
