Oil Prices Soar 5% Amid US-Iran Tensions

The recent dispute between US President Donald Trump and Iran has led to a 5% increase in global oil prices, reaching $87 per barrel from $83.

This rise is attributed to concerns that the Strait of Hormuz may not be reopened, potentially disrupting oil supplies. According to Francisco Blanch, head of commodities and derivatives research at Bank of America, if an agreement is not reached, oil prices will continue to rise as the world heads into winter.

Nigeria's revenue from crude oil sales has also increased due to the higher global price. With a budget based on an oil price of $64.85 per barrel, Nigeria records an excess revenue of $22.15 per barrel at the current price.