Oil Prices Surge After Israel Strikes Iran
Tensions in the Middle East escalated sharply on Friday after the Israel Defence Forces (IDF) launched an attack on Iran’s nuclear facility, prompting an immediate spike in global crude oil prices. Iran responded with a counterattack, fuelling fears of a prolonged regional conflict and disruption to global energy supply chains.
Brent, WTI and NYMEX Prices Hit February 2025 Highs
Following the strike, crude futures saw a significant jump:
Brent Crude rose by 9.5% to $75.15 per barrel
NYMEX Light Sweet climbed 10% to $73.20 per barrel
West Texas Intermediate (WTI) increased to $74 per barrel
These figures mark the highest oil price levels recorded in February 2025, exceeding Nigeria’s 2025 national budget benchmark of $75 per barrel.
Rising Oil Prices May Push PMS Rates Higher in Nigeria
Local Fuel Prices Already Near ₦900 Per Litre
With Nigeria’s current Premium Motor Spirit (PMS) prices ranging between ₦870 and ₦910 per litre in Lagos and Abuja, analysts warn that surging global oil prices could translate into higher fuel prices at home.
Despite being Africa’s largest economy, Nigeria continues to rely on imported crude oil, even with the Dangote Refinery now operational. The refinery imports a large share of its feedstock from the United States, linking domestic production to international price fluctuations.
Global Reactions as Conflict Intensifies
The escalation has drawn swift reactions from world powers, including:
United Nations (UN) – called for restraint and immediate de-escalation
United States – reaffirmed support for Israel while urging diplomacy
China and Saudi Arabia – expressed concern over oil market volatility
With the Middle East being a critical hub for global energy, any disruption in oil supply from the region could have worldwide ripple effects, including in energy-dependent economies like Nigeria.
What This Means for Nigerians
With no active fuel subsidies in place and an exchange rate crisis already straining the economy, any surge in crude oil prices typically leads to an automatic rise in PMS prices.
For households and transport-dependent businesses, this could mean higher living costs in the weeks ahead if the conflict lingers.
