Hormuz blockade slashes oil shipments, spikes global prices—Nigeria feels ripple effects

The Strait of Hormuz remains virtually paralyzed a month after the US-Israel war on Iran began on February 28, with Tehran restricting access to the critical waterway. Only four vessels transited on Monday—a 95% drop from the peacetime average of 120 daily crossings—per maritime intelligence firm Kpler. A Kuwaiti tanker was attacked at Dubai Port, sparking a fire but causing no injuries or spill, while Chinese container ships recently passed via an Iran-approved route around Larak Island, suggesting limited commercial corridors.

Global shipping faces severe disruption: 20,000 seafarers are affected regionally, with eight killed since the conflict started, per the International Maritime Organization. Forty-four percent of all crossings since the war began have been by ships under US, EU, or UK sanctions, according to AFP analysis. Asia is importing more crude from Nigeria and Angola to compensate, but transport costs and insurance premiums have surged.

For Nigeria—where oil revenue funds most foreign exchange and government spending—the Hormuz blockage pushes up global crude prices, raising fuel import costs and inflationary pressure. Consumers already strained by high living costs could see further pump price hikes if government passes on expenses. Diversifying energy sources may accelerate, but fiscal constraints limit options.

With peak demand season approaching and the situation fluid, how should Nigeria brace for sustained high oil prices? Should subsidies return despite fiscal strain, or must costly diversification fast-track?

SOURCE: https://www.channelstv.com/2026/03/31/strait-of-hormuz-shipping-blockade-update/