Oil Surges to Six-Week High as Brent Climbs Above $95 Per Barrel

Global oil prices climbed sharply on Wednesday, with Brent crude rising above $95 per barrel for the first time in six weeks amid growing fears of supply disruptions linked to escalating tensions in the Middle East.

Brent crude gained 3.41 per cent to close at $95.11 per barrel, its highest level since June 11, while the United States West Texas Intermediate crude rose 3.11 per cent to $86.96 per barrel.

The latest rally followed increasing concerns over the security of major oil shipping routes after renewed military confrontations involving the United States, Iran and the Iran-backed Houthi militia in Yemen.

The US military announced on Wednesday that it had carried out an 11th consecutive night of strikes on targets in Iran, further intensifying hostilities between both countries.

The attacks came shortly after the Kuwaiti army disclosed that its air defence systems had intercepted Iranian drones, heightening fears that the conflict could spread across the Gulf region.

US President Donald Trump also warned that the United States would respond decisively if Iran targeted commercial vessels passing through the Strait of Hormuz, one of the world’s most strategic oil transit routes.

Trump said the US would “bomb and destroy one bridge or power plant” each time Tehran attacked ships navigating the waterway.

The situation worsened after the Iran-backed Houthi rebels announced a naval blockade against Saudi Arabia and threatened to target vessels transporting Saudi crude through the Bab el-Mandeb Strait.

The Bab el-Mandeb corridor is another critical maritime route linking the Red Sea to the Gulf of Aden and serves as an important passage for global energy supplies.

Market analysts said the twin threats to the Strait of Hormuz and the Bab el-Mandeb Strait have heightened concerns about possible interruptions to global crude exports, prompting traders to push oil prices higher.

Energy experts noted that sustained disruptions in either shipping lane could tighten global oil supply and trigger further increases in crude prices.

For Nigeria, the latest surge in international oil prices could have mixed implications.

While higher crude prices may improve government revenue from oil exports, they are also expected to increase the cost of importing refined petroleum products.

Analysts warned that if Brent crude remains above $95 per barrel, international spot prices could continue rising, potentially translating into higher petrol pump prices across Nigeria in the coming weeks.