Oil prices surge as Middle East tensions disrupt energy supply routes, triggering fuel price hikes and global market uncertainty
Global energy markets recorded sharp volatility on Monday as oil prices surged following intensified missile and drone exchanges involving Iran, the United States and Israel, raising fears of widespread disruption to global oil and gas supplies.
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International benchmark Brent crude climbed by about 10 per cent to above 82 dollars per barrel before easing slightly to around 79 dollars, while United States crude gained 7.6 per cent to trade at 72.20 dollars per barrel amid mounting geopolitical uncertainty.
According to reports monitored from international media outlets, natural gas prices spiked by nearly 50 per cent after QatarEnergy suspended liquefied natural gas production following alleged military strikes on critical facilities.
Qatar’s Ministry of Defence confirmed that a drone launched from Iran targeted infrastructure in Ras Laffan Industrial City, prompting the temporary shutdown of LNG operations.
Another reported strike damaged a water tank at a power plant in Mesaieed, south of Doha.
Tensions also spread to Saudi Arabia, where energy giant Aramco halted operations at its Ras Tanura refinery after a drone attack, further deepening concerns over supply stability in the Gulf region.
Security fears intensified around the Strait of Hormuz, a strategic maritime corridor responsible for transporting roughly one-fifth of global oil and gas shipments.
Iran has reportedly warned vessels against navigating the passage, leading to a sharp slowdown in shipping activity.
Maritime monitoring agencies disclosed that more than 150 tankers have anchored outside the strait as operators reassess safety risks, while separate incidents involving attacks on commercial vessels heightened anxiety across international shipping lanes.
Analysts warned that prolonged hostilities could drive crude prices beyond the 100 dollars per barrel threshold, potentially triggering inflationary pressures across energy-importing economies.
The impact has already filtered into Nigeria’s domestic market. Dangote Petroleum Refinery increased its Premium Motor Spirit gantry price by ₦101, raising the ex-depot rate from ₦774 to ₦875 per litre.
A senior refinery official attributed the adjustment to rising global crude costs and replacement pricing pressures linked to the unfolding crisis.
Energy experts cautioned that sustained instability in the Middle East could increase shipping insurance premiums, disrupt supply chains and push petrol and diesel prices higher despite Nigeria’s expanding local refining capacity.
Global financial markets reacted negatively to the escalating conflict. The Dow Jones Industrial Average fell nearly one per cent at opening trade, while the Nasdaq and S&P 500 also recorded losses.
European markets posted steeper declines, with London’s FTSE 100 dropping one per cent, France’s CAC 40 falling 1.8 per cent and Germany’s DAX declining 2.1 per cent as investors shifted towards safer assets.
Gold prices rose by two per cent to 5,388 dollars per ounce, reflecting heightened investor demand for traditional safe-haven investments amid geopolitical uncertainty.
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Market watchers say continued escalation could produce a powerful ripple effect across energy prices, transportation costs and global economic stability in the weeks ahead.
