Global oil prices are on track for their sharpest weekly gain since 2022, as escalating tensions in the Middle East disrupt shipping and energy exports through the strategic Strait of Hormuz, Reuters reports.
Data from global commodities markets show that Brent Crude futures have surged about 20 percent this week, while West Texas Intermediate (WTI) has climbed roughly 25 percent.
The rally comes amid growing concerns that the widening conflict in the region could disrupt a major share of global oil supply, intensifying volatility in energy markets.
What the data is saying
Oil prices continued to rise on Friday, reaching their highest levels since mid-2024 as supply disruptions and geopolitical tensions deepened.
- Brent crude rose by $2.09, or 2.45 percent, to $87.50 per barrel as of 0953 GMT.
- WTI gained $3.76, or 4.64 percent, to $84.77 per barrel.
Both benchmarks have reached their highest levels since July 2024 following the sharp weekly rally.
The price surge follows military strikes by the United States and Israel on Iran, which triggered Tehran to halt tanker movement through the Strait of Hormuz.
The disruption is significant because the waterway handles roughly one-fifth of the world’s daily oil supply, making it one of the most critical routes for global energy trade.
More Insights
Energy market concerns intensified after warnings from regional producers about possible export disruptions if the conflict escalates further.
- Qatar’s energy minister told the Financial Times that Gulf producers could shut down energy exports within weeks if the situation worsens.
- Such a move, according to the minister, could potentially push global oil prices to as high as $150 per barrel.
- The conflict has spread across key energy-producing regions in the Middle East, disrupting output and forcing shutdowns of some refineries and liquefied natural gas plants.
Meanwhile, the United States Department of the Treasury granted waivers allowing companies to purchase sanctioned Russian crude stored on tankers to help ease supply shortages.
Ship-tracking firm Kpler estimates that about 30 million barrels of Russian oil are currently stored on vessels across the Indian Ocean, Arabian Sea region, and the Singapore Strait.
What you should know
The sharp rise in global oil prices is already affecting fuel markets in Nigeria, where domestic petrol prices have begun to increase.
- Nigerian National Petroleum Company Limited has raised the pump price of Premium Motor Spirit (PMS) at its retail stations in Abuja to N960 per litre from N875.
- The increase follows a similar adjustment by Dangote Petroleum Refinery, which raised its gantry price by N100 to N874 per litre from N774 earlier in the week.
The changes reflect the sensitivity of Nigeria’s downstream fuel market to fluctuations in international crude oil prices.
