Saudi-Led Maritime Coalition Bolsters Oil Prices Near $90

Oil prices finished July down about 8% on the week but still held strong near $90 per barrel, supported by disruptions in the Strait of Hormuz and the Red Sea. Saudi Arabia announced a 14-nation maritime coalition to secure shipping lanes in the region.

The creation of this coalition comes as Iran rejected Oman's proposal for joint management of the Strait of Hormuz, and no new US-Iran talks are scheduled. This has reinforced a geopolitical floor beneath oil prices, with physical risk premia rather than demand fundamentals setting the marginal price.

Nigeria can expect continued support from oil prices around $90 per barrel in 2026, which should ease pressure on external reserves and provide some cushion for naira stability. However, the persistence of subsidy-related and energy cost pass-through into domestic inflation remains a live transmission risk that fiscal authorities should monitor closely.