The outbreak of war between Israel and Iran has added a troubling dimension to the challenges of an already floundering global economy.
The ongoing Israeli-Iran conflict has triggered a surge in crude oil prices, climbing 8.8% to $74 per barrel from $68, prompting 10 Nigerian marketers to raise depot petrol prices. Iran’s threat to block the Strait of Hormuz—through which over 20% of global oil passes—has heightened market volatility.
EMADEB led price adjustments with a 2.18% rise to N845 per litre, while Ever implemented the smallest hike, raising prices by 0.46% to N870. Others, including Aiteo, Pinnacle, Dangote, MENJ, Swift, Rainoil, First Royal, and First Fortune, recorded price hikes ranging between N5 and N40 per litre.
JP Morgan warned that crude prices could hit $120–$130 per barrel if military conflict escalates. “The outbreak of war between Israel and Iran has added a troubling dimension to the challenges of an already floundering global economy,” said Dr. Muda Yusuf of CPPE.
While Nigeria may benefit from increased oil revenue, Yusuf noted, “High energy cost, elevated inflationary pressures and a spike in interest rates are all headwinds that could undermine the profitability of businesses in the economy.”
Professor Wumi Iledare added: “Oil prices can spike in the short term, but sustainability depends on fundamentals. High prices may offer temporary relief but not lasting transformation.”
Despite optimism, Olufemi Idowu of Kreston Pedabo cautioned: “We have used a lot of our crude to obtain loans. This will lower our gains.”