LAGOS — Global oil prices surged past the $110 per barrel mark on Thursday, as escalating geopolitical tensions in the Middle East and threats to critical energy infrastructure triggered a massive risk premium in the commodity markets.
Brent crude, the international benchmark, jumped more than 5% in early trading to hit a peak of $112.84 per barrel. The rally marks a significant breach of psychological resistance levels, driven primarily by fears of supply disruptions following heightened friction between Washington and Tehran.
The price spike follows recent threats by U.S. officials to target Iranian energy assets, coupled with retaliatory strikes that have reportedly impacted gas facilities in Qatar. Traders are particularly concerned about the stability of the Strait of Hormuz, a vital maritime chokepoint through which approximately 20% of the world’s petroleum liquid consumption passes daily.
Market analysts warn that the current volatility is rooted in “infrastructure vulnerability” rather than simple supply-demand imbalances. With global inventories already thin and OPEC+ maintaining strict production discipline, any sustained disruption to Gulf exports could push prices toward $150 per barrel.
While Brent crude led the rally, West Texas Intermediate (WTI) also saw gains, trading near $98.70 per barrel. The widening spread between the two benchmarks—now exceeding $13—underscores the market’s assessment that the immediate risks are concentrated in Middle Eastern supply chains rather than North American production.
The surge is expected to have immediate downstream implications, with energy experts predicting a sharp rise in the landing cost of refined petroleum products. For import-dependent regions, this price movement likely signals a forthcoming adjustment in domestic fuel pump prices and increased pressure on foreign exchange reserves.
