Global oil prices surged past the $100-per-barrel mark on Thursday following fresh attacks on commercial vessels in the Red Sea, heightening concerns over supply disruptions in one of the world’s most critical energy shipping routes.
Brent crude, the international benchmark, climbed 6.9 percent to $100.60 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 5.63 percent to trade at $91.72 per barrel.
The sharp rise came after reports that Yemen’s Houthi rebels targeted two Saudi oil tankers in the Red Sea, intensifying security risks for global crude shipments through the Red Sea and the Strait of Hormuz.
The Houthis claimed responsibility for the operation, saying the attacks were directed at Saudi oil vessels. Saudi authorities confirmed that one of the tankers caught fire after being struck while navigating the Red Sea.
The latest escalation follows the group’s warning earlier this week that it would begin targeting ships transporting Saudi crude through the Bab el-Mandeb Strait, alongside a declaration of what it described as a naval blockade against Saudi Arabia.
The regional conflict also intensified as the United States military announced it had launched an 11th straight night of strikes against Iranian targets on Wednesday.
The spike in crude prices is expected to have mixed implications for Nigeria. While higher international oil prices could boost government revenues from crude exports, they also risk driving up the cost of refined petroleum products, potentially undermining recent progress in easing inflation.
Reflecting the changing market conditions, Dangote Petroleum Refinery on Thursday raised its ex-depot price of premium motor spirit (petrol) from N1,075 to N1,215 per litre. The refinery also resumed the sale of petrol in naira, a move expected to influence domestic fuel supply and pricing.
