Crude oil price rose on Monday to $79 a barrel, the highest in more than a year, overshooting Nigeria’s budget benchmark of $64.85 per barrel.
The development came amid worsening geopolitical tensions in the Middle East.
Brent crude, the global oil benchmark, rose over 9 per cent to $79 a barrel for the first time since August 2024.
The US West Texas Intermediate also rose over 9 per cent to $73.06 a barrel.
On Saturday, US-Israeli strikes on Iranian targets killed Ayatollah Ali Khamenei and Abdolrahim Mousavi, Iran’s supreme leader, and armed forces chief of staff, respectively.
Khamenei’s daughter, grandchild, daughter-in-law and son-in-law were also killed in the military operation.
In response, Iran launched waves of missiles across the region, threatening to pull its neighbours into the escalating conflict.
Maersk, Mediterranean Shipping Company (MSC), and CMA CGM have halted sailings through the Strait of Hormuz and the Suez Canal-Bab el-Mandeb corridor amid escalating security threats in the Middle East.
According to Reuters, about a fifth of the world’s seaborne oil trade and 20 percent of its liquefied natural gas (LNG) pass through the Strait of Hormuz.
Reuters said a prolonged surge in oil prices could reignite global inflationary pressures and effectively act as a tax on businesses and consumers, potentially weakening demand.
