Bonny Light Crude Hits $115 Amid Strait of Hormuz Tensions

Nigerian Bonny Light crude oil prices last traded at $115 a barrel, while West Texas Intermediate settled at $103 a barrel, driven by supply-side concerns. The increase in prices is attributed to higher world Brent prices and improved domestic production, which averaged 1.7 mbpd in August 2026, up from approximately 1.53 mbpd earlier in the year.

The rise in prices coincides with heightened geopolitical risks in the Strait of Hormuz, where at least 28 vessels have been attacked this month alone. President Donald Trump warned of potential strikes against Iran, while US Ambassador to Turkiye Tom Barrack indicated that a strike could occur soon.

The International Atomic Energy Agency's chief, Rafael Grossi, stated that the agency is ready to restart nuclear verification in Iran but requires a negotiated deal. Nigeria's crude and condensate reserves stand at 37 billion barrels, with local refining capacity increasing as more crude is directed to domestic refineries.