Crude oil jumps 7% as Trump threatens Hormuz blockade - N1,290-N1,350 petrol in Nigeria
Crude oil prices surged 7% Monday as West Texas Intermediate hit $103/barrel and Brent reached $101/barrel. The spike follows US President Trump's announcement that the US Navy will "BLOCKADING any and all ships trying to enter or leave the Strait of Hormuz" after US-Iran peace talks orchestrated by Pakistan collapsed.
Iran has warned of the dangers of such a blockade, which has reignited concerns about fresh domestic fuel price hikes in Nigeria. Petrol is currently being dispensed between N1,290 and N1,350 per liter across filling stations nationwide.
The Strait of Hormuz handles about 20% of global oil exports, making any disruption particularly significant for Nigeria's import-dependent fuel market. With crude prices already above $100, expect possible fuel price adjustments in coming weeks as marketers pass increased costs to consumers.