Oil prices jump to $95.95/bbl amid Iran tensions - what it means for Nigeria's revenue and fuel costs

Brent crude rose 1.8% to $95.95 per barrel and WTI increased 1.7% to $90.17 on Thursday as US-Iran tensions heightened, erasing Wednesday's losses amid hopes for a ceasefire deal. The price jump reflects renewed fears of Strait of Hormuz disruptions after US strikes on Iranian drones and control centers, despite Iranian officials downplaying hostilities.

For Nigeria, higher oil prices boost export revenue as Africa's largest crude producer, potentially easing budget pressures. However, as a net fuel importer, sustained increases could eventually pressure pump prices if subsidy adjustments occur, affecting transport costs and inflation. This comes as the CBN maintained interest rates at 26.5% last Wednesday to stabilize the naira amid forex volatility.

Asian markets reacted weakly with Hong Kong's Hang Seng down 1.5% and Shanghai slipping 0.3%, while Seoul and Tokyo declined, though Taiwan gained. Economists warn prolonged Middle East uncertainty could force central banks to raise rates if inflation worsens, increasing borrowing costs globally.

Will higher oil revenues translate to faster infrastructure spending or subsidy reforms, and should you brace for potential fuel price adjustments in the coming weeks?

SOURCE: https://www.channelstv.com/2026/05/28/oil-prices-bounce-higher-after-new-us-strikes-on-iran/