US-Iran Crisis Pushes Nigerian Crude Oil Price Towards $120
Nigeria’s crude oil price is moving closer to $120 per barrel as tensions between the United States and Iran continue to affect the global energy market.
Data from the Central Bank of Nigeria showed that Bonny Light crude traded around $117 per barrel, reflecting a sharp increase linked to the ongoing Middle East conflict.
Oil Prices Rise Amid Middle East Conflict
The Nigerian crude nears $120 trend follows a sustained rise in global oil prices since the conflict between the US and Iran escalated.
Crude prices had traded around $70 per barrel before the crisis intensified.
The closure of the Strait of Hormuz, a key global shipping route responsible for nearly 20 per cent of worldwide oil transportation, has contributed significantly to the increase in prices.
Nigeria’s Bonny Light crude is typically sold above the global Brent crude benchmark, making the surge more noticeable in the local market.
Iran Responds to US Proposal
According to reports, Iran has submitted a response to a recent peace proposal presented by the United States through Pakistan.
Iranian Foreign Ministry spokesman Esmaeil Baghaei said Tehran’s demands include the release of frozen assets and the removal of sanctions.
Iran also requested compensation for war-related damage and an end to military activities in affected regions, including Lebanon.
Trump Warns Iran Amid Ongoing Talks
US President Donald Trump warned that time was running out for Iran to reach an agreement.
Reports indicate that Washington has continued to demand restrictions on Iran’s nuclear activities and the reopening of the Strait of Hormuz.
The Nigerian crude nears $120 situation has increased global concerns over energy supply disruptions and possible inflation in oil-importing countries.
Global Oil Market Faces Uncertainty
The crisis has created uncertainty in the international oil market, with analysts monitoring possible military escalation and stalled negotiations.
US Treasury Secretary Scott Bessent said discussions were ongoing with G7 finance ministers regarding sanctions aimed at reducing Iran’s access to financial resources.
Meanwhile, Iranian officials insisted the country was prepared for any further escalation in the conflict.
Impact on Nigeria’s Economy
The Nigerian crude nears $120 development could increase government revenue from oil exports if prices remain elevated.
However, analysts have also warned that higher global crude prices may worsen fuel costs and inflation pressures in many countries.
Nigeria remains heavily dependent on crude oil exports for foreign exchange earnings and budget funding.