Oil climbs to $80 as Trump reinstates Iran port blockade, imposes 20% charge on cargo
Global oil prices have surged past $80 per barrel following renewed geopolitical tensions in the Middle East. President Trump announced a blockade on Iranian cargo, heightening fears of supply disruptions through the Strait of Hormuz.
Why it matters
Rising oil prices threaten to increase global inflation and domestic fuel costs, impacting both energy-exporting nations like Nigeria and global consumers.
Global crude oil prices rose sharply yesterday after renewed hostilities in the Middle East heightened fears of prolonged supply disruptions through the Strait of Hormuz , a development that could boost Nigeria’s oil earnings while increasing the risk of higher domestic petrol prices.
The development followed President Donald Trump ‘s statement yesterday that the United States would be paid to guard the Strait of Hormuz, as it would be “taking over” the strategic waterway.
Brent crude futures surged by about four per cent, trading above $80 per barrel, the highest in more than three weeks, while the U.S. benchmark, West Texas Intermediate (WTI), climbed 4.13 per cent to $74.36 per barrel as investors reacted to escalating geopolitical tensions.
The latest rally followed fresh U.S. military strikes on Iran over the weekend and retaliatory missile attacks by Iran targeting U.S. allies, including Bahrain, Kuwait, Qatar, Jordan and Oman.
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