The latest standoff between US President Donald Trump and Iran over the reopening of the Strait of Hormuz has triggered a sharp rise in global oil prices.
Brent crude, the international benchmark, climbed five per cent to $87 (₦118,668) per barrel from $83 (₦113,212) per barrel as uncertainty over the vital shipping route continued according to Vanguard.
The development has raised concerns about further increases in oil prices, particularly as the winter season approaches.
BofA warns of further oil price increases
Francisco Blanch, Bank of America’s head of commodities and derivatives research, warned that crude prices could continue rising if Trump and Iran fail to reach an agreement.
Speaking to CNBC on Monday, Blanch said, “But if we don’t, we’re going to keep creeping higher into the winter.”
He also noted that the number of vessels currently passing through the Strait of Hormuz has fallen sharply.
According to Blanch, only a few ships can now navigate the waterway, compared with about 140 vessels that previously passed through the route.
The Strait of Hormuz is a major global oil shipping route, making disruptions there a potential threat to international crude supplies.
Nigeria records higher oil revenue margin
The rise in Brent crude has also widened Nigeria’s revenue margin above the oil benchmark used for its 2026 budget.
At $87 (₦118,668) per barrel, Nigeria is earning about $22.15 (₦30,186) above the $64.85 (₦88,482) oil price benchmark contained in the N68.32 trillion 2026 budget.
The budget was also based on crude production of 1.84 million barrels per day and an exchange rate of N1,400 to the dollar.
However, checks by Energy Vanguard showed that the increase in global crude prices had yet to trigger a corresponding response in Nigeria’s domestic petroleum market.
Petrol, diesel prices record mixed movements
Prices of Premium Motor Spirit, popularly known as petrol, and Automotive Gas Oil, or diesel, recorded mixed movements across major petroleum markets on Monday.
In Lagos, petrol prices remained relatively stable, although some depots recorded slight reductions.
African Terminal reduced its petrol price by N4 per litre, from N1,169 to N1,165.
Aiteo also cut its depot price from N1,168 to N1,165 per litre, while NIPCO reduced its price by N2 to N1,166.
Dangote and Pinnacle, meanwhile, retained their petrol prices at N1,166 per litre.
However, some other marketers sold at significantly higher prices.
GulfTreasure and Duport were listed at N1,550 per litre, while Rain Oil recorded a price of N1,580.
The varying prices highlight continued volatility in Nigeria’s downstream petroleum sector.
Depot prices remain influenced by location, product availability, supply conditions and individual pricing decisions.
For motorists and other fuel consumers, the latest development could put further pressure on pump prices if higher depot prices persist.