Brent Crude Surges Past $100/Barrel Amid Escalating Middle East Tensions
Nigeria's struggling revenue profile is set for a significant boost as Brent crude has risen above $100 a barrel for the first time in nearly two months. This increase represents a rise of $36.42 per barrel above the projected oil price benchmark of $64.85, which is used in Nigeria's 2026 federal budget.
The latest surge in crude oil price comes as tensions in the Middle East escalate attacks on commercial shipping, deepening concerns that the supply crisis is spreading beyond the Strait of Hormuz. Brent crude hit an intraday high of $101.01 before settling at $100.69 a barrel, while WTI also saw a sharp increase.
The market's rally is no longer driven solely by fears surrounding Hormuz, as repeated attacks on commercial shipping, renewed fighting involving Iran, and mounting export disruptions have steadily erased expectations of a quick return to normal oil flows. Kazakhstan has begun cutting oil production after drone attacks shut down tanker loadings at the Caspian Pipeline Consortium terminal on the Black Sea.