Global crude oil prices surged on Monday, March 2, 2026, as the escalating conflict between Iran, the United States, and Israel entered its fourth day, sparking fears of a prolonged disruption in the Middle East.
Global crude oil prices continued their steady ascent on Monday as the military confrontation between Iran, the United States, and Israel entered its fourth day of high-intensity hostilities. The market responded sharply to the confirmed death of Iran’s Supreme Leader, Ayatollah Ali Khamenei, and 47 other high-ranking officials following a massive joint U.S.-Israeli airstrike on Tehran. By Monday afternoon, international benchmark Brent crude had climbed to $78.50 per barrel, while West Texas Intermediate (WTI) rose to $71.84, representing a significant jump from Saturday’s closing prices. The price rally is largely driven by the effective closure of the Strait of Hormuz, a critical maritime chokepoint through which approximately 20% of the world’s oil supply passes, as major shipping firms suspended operations amid retaliatory Iranian strikes across the region.
The suspension of shipments and the declaration of “war risk” by maritime insurers have created a de facto blockade, leaving at least 150 tankers at anchor and rattling global energy security. Iran has retaliated with missile strikes against U.S. assets and allies in the Middle East, leading to reported explosions in the UAE, Kuwait, and Bahrain. Analysts warn that if the disruption persists, Brent could breach the $100 mark, further intensifying global inflationary pressures. The Islamic Revolutionary Guard Corps (IRGC) has issued warnings to commercial vessels, stating that transit through the waterway is no longer secure, a move that has forced several countries, including Greece, to advise their fleets to avoid the Gulf region entirely.
Reacting to the development, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, described the crisis as a “classic double-edged shock” for the Nigerian economy. He noted that while the surge in prices could bolster Nigeria’s foreign exchange reserves and government revenue, it poses a severe threat to domestic price stability due to the nation’s reliance on imported refined petroleum products. “The most immediate domestic risk for the country in this development lies in inflation transmission,” Yusuf stated. He warned that higher international crude prices would feed directly into increased costs for petrol, diesel, and aviation fuel, potentially worsening the cost-of-living crisis despite the fiscal windfall from crude exports.
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