Global Oil Prices Surge Above $100 per Barrel Amid Red Sea Attacks

Global Oil Prices Surge Above $100 per Barrel Amid Red Sea Attacks

Global oil prices climbed sharply on Thursday after renewed attacks on commercial vessels in the Red Sea heightened concerns over disruptions to international crude oil supplies.

Brent crude, the global benchmark, rose by 6.9 per cent to $100.60 per barrel, while US West Texas Intermediate (WTI) gained 5.63 per cent to trade at $91.72 per barrel.

The price rally followed reports of attacks on two Saudi oil tankers by Yemen’s Houthi forces, raising fears over the security of major global shipping routes through the Red Sea and the Strait of Hormuz. The Houthis later claimed responsibility for the operation, with reports indicating that one of the affected vessels caught fire after the attack.

The Iran-aligned group also threatened to target vessels transporting Saudi oil through the Bab el-Mandeb Strait and announced what it described as a naval blockade against Saudi Arabia, escalating tensions in one of the world’s most strategic energy corridors.

At the same time, reports indicated that the United States military carried out an 11th consecutive night of strikes against targets in Iran, further heightening geopolitical tensions across the Middle East.

The latest developments have raised concerns over the stability of global energy markets, with analysts warning that prolonged disruptions to oil shipments could place additional upward pressure on crude prices.

For Nigeria, the increase in international oil prices could boost crude oil export earnings and government revenues. However, higher global oil prices may also translate into increased domestic fuel costs and put pressure on inflation.

Meanwhile, the Dangote Petroleum Refinery has adjusted its ex-depot petrol price from ₦1,075 per litre to ₦1,215 per litre while resuming the sale of Premium Motor Spirit (PMS) in naira.

Global Oil Prices Surge Above $100 per Barrel Amid Red Sea Attacks