Oil Market on Edge as US-Iran Conflict Sends Brent Above $94.5

Brent crude, the international benchmark, settled at $94.65 a barrel, gaining $4.16, or 4.6 per cent. US West Texas Intermediate (WTI) crude rose $4.46, or 5.2 per cent, to $90.22 a barrel.

The gains came after the latest escalation in the conflict revived concerns about the security of oil shipments through the Strait of Hormuz, one of the world’s most important routes for crude and other energy supplies.

The latest rise pushed Brent to its highest closing level since July 24, while WTI recorded its highest close since July 23, according to Reuters.

The market reaction followed renewed US military strikes on Iranian targets on Tuesday. The latest exchange of attacks raised fresh concerns that the conflict could develop into a broader confrontation and further threaten energy shipments from the region.

The Strait of Hormuz has become a particular focus for energy markets because of its importance to global oil transportation. Any prolonged disruption to shipping through the waterway could put additional pressure on crude supplies and prices.

Shipping data cited by Reuters showed that only four commodity vessels transited the Strait of Hormuz on Tuesday, compared with 10 the previous day and a 10-day average of about 13 vessels. Reuters cautioned that the figures remain preliminary because some vessels may switch off their tracking transponders.

Despite the sharp fall in vessel traffic, Reuters also reported that about 17 million barrels of crude oil passed through the Strait on Monday, representing the highest oil-transit volume since reductions caused by the Iran conflict.

The developments have kept traders focused on the potential impact of the fighting on global energy markets. Oil prices are particularly sensitive to developments around the Strait because of the volume of petroleum products and crude that normally move through the waterway.

For Nigeria, movements in global crude prices remain important because oil plays a central role in the country’s economy and government revenue. However, the rise in international prices does not automatically translate into an immediate or proportional change in domestic petrol prices, which are influenced by several other factors.

The latest increase therefore reflects renewed market concern over the potential for supply disruption rather than a confirmed global shortage of crude.

Investors will continue to monitor developments between the United States and Iran, as well as shipping activity through the Strait of Hormuz, for signs of whether the disruption will deepen or ease.

For now, the renewed military escalation has added another layer of uncertainty to an already closely watched global oil market, pushing both Brent and WTI sharply higher in Tuesday’s trading.