Brent crude nears $110 as Middle East tensions rise

Brent crude oil prices have climbed toward $110 per barrel, driven by escalating geopolitical tensions in the Middle East. The price surge follows missile and drone attacks by Houthi fighters on Saudi Arabia’s King Khalid Airbase and the cancellation of talks regarding the reopening of the Strait of Hormuz.

These developments have raised significant concerns regarding the security of global energy shipping routes, specifically the Strait of Hormuz and Bab al-Mandab. In Nigeria, the volatility is placing intense pressure on the downstream market. Petrol prices have reached ₦1,500 per litre, while diesel has hit ₦2,000 per litre. The Dangote Refinery has already implemented four price increases since late August, raising its gantry price by nearly 16% in three weeks.

Analysts warn that continued instability could lead to further increases in transport and logistics costs, potentially impacting food distribution and broader commodity prices. While Brent crude remains below its previous peak of $115, the rapid rise in refinery costs is already straining households and businesses.