Brent Crude Prices Surge Amid Middle East Tensions

Brent crude oil futures have surged by 20% this week, marking the largest weekly gain since 2022, driven by escalating tensions in the Middle East that threaten energy export strategies, particularly through the Strait of Hormuz. West Texas Intermediate (WTI) also climbed approximately 25%.

The increase in oil prices follows military actions involving the United States, Israel, and Iran, which have led to Iran halting tanker movements in the Strait of Hormuz, a critical route for global oil supply. The situation has intensified volatility in the energy market, with oil prices reaching their highest levels since mid-2024.

The U.S. Department of the Treasury has granted waivers allowing companies to purchase sanctioned Russian crude oil stored on tankers to alleviate supply shortages.

Currently, an estimated 30 million barrels of Russian oil are stored across various vessels in the Indian Ocean and Arabian Sea. The sharp rise in global oil prices has already begun to affect Nigeria's domestic petrol prices, reflecting the sensitivity of the country's downstream fuel market to fluctuations in international crude oil prices.