Nigerian crude hits $113/b as Iran war cuts global oil supply - FG eyes revenue boost

The Iran war that began late February 2026 has knocked over 500 million barrels of crude worth about $50 billion out of the global market. Gulf Arab jet fuel exports plummeted from 19.6 million barrels in February to just 4.1 million for March and April combined. Despite these disruptions, Nigerian crude is surging to $113 per barrel - significantly above Brent's $96/b - positioning the Federal Government for a potential revenue boost as Africa's largest oil producer benefits from tighter global supplies.

While the Strait of Hormuz remains open following a Lebanon ceasefire accord, Iran has threatened to close it again if the US continues its blockade of Iranian ports. Global onshore crude inventories have fallen by about 45 million barrels in April alone, with production outages reaching roughly 12 million barrels per day since late March.

For Nigeria, this price premium means higher foreign exchange earnings from oil exports. However, consumers should monitor potential domestic fuel price adjustments if the government reviews subsidy policies. With oil contributing substantially to Nigeria's budget and forex reserves, this market dynamic could impact naira stability and government spending capacity.

Will you benefit from potential economic improvements if oil revenues increase, or should you prepare for possible fuel price changes that could affect your transportation and household budgets?

SOURCE: https://www.channelstv.com/2026/04/18/world-loses-50bn-worth-of-oil-over-iran-war-report/