Oil markets moved higher over the past 24 hours after the United States carried out another round of airstrikes on Iran, while fuel costs also climbed in the United States and Nigeria as the conflict raised concerns about supply and transport through the Gulf.
Crude prices rise after US strikes
Brent crude advanced 0.54% to $95.49 a barrel, while West Texas Intermediate (WTI) gained 0.84% to $90.71, based on the latest market price survey.
The US Central Command said the operation targeted a broad range of Iranian military and maritime infrastructure. The affected locations and capabilities included:
- Air-defence installations and radar networks;
- Maritime equipment and related facilities;
- Mine-laying capacity; and
- Communications sites.
Washington said the strikes were a response to attacks by Iran’s Islamic Revolutionary Guard Corps (IRGC) on commercial vessels in the Strait of Hormuz and on US personnel stationed in the region.
Pressure builds around Strait of Hormuz
The United States had earlier attacked Iranian tankers under a newly introduced “tanker-for-tanker” approach in the Strait of Hormuz. The additional action intensified pressure on crude prices by increasing concerns over shipping security in one of the world’s most important energy corridors.
US diesel prices also rose sharply on Wednesday, jumping almost 7% to $4.71 per gallon. The increase added to concerns that the widening Gulf confrontation could feed into transportation and consumer inflation.
President Donald Trump convened energy-sector representatives at the White House on Tuesday as his administration sought to contain the inflationary effects of the escalating regional conflict.
Nigeria sees another pump-price increase
Nigerian motorists faced higher petrol prices as retail rates increased by between N46 and N100 per litre in Abuja and surrounding areas. Prices moved from a range of N1,210-N1,275 per litre to N1,310-N1,345 at MRS, the Nigerian National Petroleum Company Limited (NNPCL), Ranoil and other filling stations.
The latest adjustment followed a N65-per-litre increase in Dangote Refinery’s gantry price, extending the impact of higher international energy costs into Nigeria’s domestic fuel market.
