Oil Hits Multi-year Highs Surges Above $115 on Middle East Tensions

Global oil prices shot over 25 per cent on Monday to levels not seen since mid-2022, with Brent crude futures leaping $24.96, or 27 per cent, to $117.65 per barrel as the expanding US-Israeli war with Iran disrupts supplies through the Strait of Hormuz.

The surge, tracked at 0451 GMT, by Reuters, marks the largest single-day jump in history for Brent, while US West Texas Intermediate (WTI) crude climbed $25.72, or 28.3 per cent, to $116.62 per barrel.

WTI even touched a session high of $119.48 earlier, with Brent peaking at $119.50 – building on last week’s 27 per cent rise for Brent and 35.6 per cent for WTI.
For Nigeria, the rally spells immediate pain at the pumps.

US West Texas Intermediate (WTI) crude followed suit, up sharply to current levels near $116, after touching intraday highs of $119.48.
Nigeria, still reliant on imported refined fuel despite its oil riches, now stares down steeper pump prices and naira strains.

Energy markets are on edge over the Strait of Hormuz, a chokepoint for one-fifth of global oil, where tanker disruptions and security risks have slowed shipments. Asian buyers, reliant on Middle Eastern crude, are hit hardest, but Nigeria’s dependence on imports from the region could exacerbate local shortages.

Major producers are slashing output: Iraq and Kuwait have cut oil production, following Qatar’s LNG reductions, as war blocks Middle East shipments.

Analysts predict Saudi Arabia and the UAE will follow soon, exhausting storage capacities.

Reports say tensions escalated with Mojtaba Khamenei’s appointment as Iran’s new supreme leader, succeeding his father Ali, signaling hardliner control amid the week-old conflict with the US and Israel.

“Unless oil flows through the Strait of Hormuz resume soon and regional tensions ease, upward pressure on prices is likely to persist,” warned Vasu Menon, managing director for investment strategy at OCBC in Singapore.

Commodity analyst Satoru Yoshida of Rakuten Securities added: “With the late leader’s son in charge, US President Donald Trump’s regime change goal in Iran looks tougher. This accelerates buying, as Iran may prolong Hormuz closure and attacks on oil facilities – pushing WTI to $120, then $130 soon.“