Brent Crude Surges Past $107 as Middle East Conflict Intensifies

Oil prices have surged to record highs, hitting $107 per barrel for Brent crude and $102 per barrel for US crude. The spike is largely attributed to ongoing conflict in the Middle East, particularly in the Strait of Hormuz and Red Sea, where Iran-backed Houthis have attacked Saudi Arabia.

The increase has led to higher fuel prices in Nigeria, with diesel reaching N2,000 per litre in some areas and petrol surpassing N1,400 per litre. This rise is causing concern for businesses and households that rely heavily on petroleum products for power and mobility.

Experts predict that the conflict will lead to further disruptions in global oil supplies, pushing energy prices even higher in the coming weeks. S&P Global Energy has revised its forecast, expecting Middle East oil production to remain below pre-war levels by the end of next year and predicting oil prices to stay within the $80 to $100 per barrel range through 2027.

Jason Tuvey, deputy chief emerging markets economist at Capital Economics, warns that the step-up in attacks suggests Iran is trying to regain the initiative in the war, which could set back oil output recovery in the Gulf and increase global energy prices further.