Oil prices surge as Middle East conflict threatens global energy supply

Oil prices rose nearly 14% Monday as Iran escalated attacks across the Middle East, including Qatar and Dubai, after the US and Israel struck Iran. The conflict threatens to close the Strait of Hormuz, through which 20% of global oil flows, potentially causing a fresh energy crisis and higher inflation. Brent crude rose 2.5% to $79.67/barrel. US President Trump warned the conflict could last over four weeks, targeting Iran's missiles, navy, and nuclear program. The US State Department urged Americans to leave the Middle East. Oil prices could reach $200 if Iran blocks the Strait. This creates a dilemma for central banks already fighting inflation while supporting economies. Nigeria, heavily reliant on oil exports, faces potential naira pressure and inflation risks from higher global prices. Will you adjust fuel consumption or budget for higher costs?

SOURCE: https://www.channelstv.com/2026/03/03/oil-extends-gains-stocks-drop-as-iran-conflict-spreads/