Global crude hits highest level since July 2025 amid Middle East escalation, offering upside for oil exporters like Nigeria……
Global crude oil prices surged on Friday, climbing to their highest level in seven months as escalating geopolitical tensions between the United States and Iran shook energy markets.
Brent crude, the international benchmark, settled at $72.87 per barrel at market close, its strongest level since July 31, 2025, when it traded at $71.7 before entering a prolonged downward trend. During intraday trading, Brent briefly touched $73.5 per barrel before easing slightly.
Meanwhile, West Texas Intermediate (WTI) closed at $67.02 per barrel.
The rally marked a sharp break from months of softer pricing and reflects growing concerns over potential supply disruptions in the Middle East.
Talks Stall, Tensions Rise
The latest spike followed indirect talks between the United States and Iran held in Geneva on Thursday. The discussions came after US President Donald Trump ordered a military buildup in the region amid renewed friction over Iran’s nuclear programme.
Oil prices gained more than $1 per barrel during the talks, as traders interpreted signals that negotiations were faltering, particularly over Washington’s insistence on zero uranium enrichment.
On Friday, Trump voiced frustration with the pace of diplomacy, warning that “sometimes you have to use force,” further heightening market anxiety.
Tensions escalated dramatically on February 28, when US and Israeli forces reportedly carried out “pre-emptive” missile strikes on Iranian targets. Iran responded swiftly with retaliatory strikes on US military bases across the Middle East.
Explosions were reported in Abu Dhabi, Manama, Doha, Kuwait, and Riyadh. In Bahrain, authorities confirmed that the headquarters of the US Navy’s Fifth Fleet in Juffair was struck by a missile.
Supply Risks Loom
Analysts say the intensifying conflict introduces “asymmetric upside risk” to oil prices, as any disruption to production, shipping routes, or export infrastructure in the Gulf region could tighten global supply.
Compounding the bullish sentiment are reports that Saudi Arabia may raise its April crude prices to Asia for the first time in five months, driven by stronger demand from India as it adjusts supply flows away from Russian barrels. The potential increase is estimated at around $1 per barrel.
At the same time, sources indicate that the Organization of the Petroleum Exporting Countries (OPEC) and its allies are expected to review output levels at their March 1 meeting, with a possible production increase of 137,000 barrels per day for April after previously pausing supply hikes.
Implications for Nigeria
For major crude exporters like Nigeria, the price rally could provide fiscal breathing room. Current Brent levels are well above Nigeria’s 2026 budget benchmark of $64.85 per barrel, potentially boosting oil revenue projections if prices remain elevated.
However, market watchers caution that while geopolitical tensions may sustain upward pressure in the short term, volatility remains high. Much will depend on whether diplomatic channels reopen or whether the conflict broadens into a prolonged regional confrontation.
For now, the oil market is trading on uncertainty and uncertainty is proving bullish.
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