US Services Growth Cools as Oil Prices Surge on Middle East War

Back in April 2025, US services activity slowed in March, with the ISM services index dropping to 54% from 56.1% in February. Business activity and employment shrank slightly, while prices rose due to higher oil and fuel costs. This follows US-Israeli strikes on Iran in late February that triggered a regional war, with Iran blocking the Strait of Hormuz—a critical energy chokepoint—sending global oil and gas prices soaring. Meanwhile, President Trump's tariff policies create supply chain uncertainty, with businesses reporting slower deliveries and higher costs for materials like lumber and steel.

For Nigeria, this matters because the country relies heavily on imported refined petroleum. Higher global oil prices often lead to increased fuel costs at Nigerian pumps within weeks, impacting transport, food prices, and overall inflation. Supply chain disruptions from the Middle East conflict could delay imports of essential goods, while US tariff fluctuations may affect trade flows with America.

Nigerians should monitor fuel price adjustments from major marketers. Businesses dependent on imports should review supply chain resilience and consider alternative sourcing. Commuters may need to budget for higher transport fares if fuel prices rise.

Will you adjust your commute to save on transport costs, or push for remote work? Should importers diversify suppliers now to avoid delays?

SOURCE: https://www.channelstv.com/2026/04/06/us-services-activity-growth-cools-in-march/