Oil prices rise to $91 as US-Iran peace efforts stall
Oil prices climbed on Tuesday as hopes for a breakthrough in US-Iran peace negotiations weakened, raising fresh concerns about disruptions to global energy supplies.
Brent crude gained about 1 percent to $91.76 a barrel, while US West Texas Intermediate (WTI) also rose 1 percent to $85.24 per barrel.
The increase followed Iran’s announcement that it would adopt a more offensive position, while the United States ruled out extending the existing ceasefire arrangement. The developments have heightened fears that the conflict could persist and further threaten oil supplies.
Efforts to advance peace talks and restore normal tanker traffic through the strategic Strait of Hormuz have also stalled. The conflict, which began following US and Israeli attacks on Iran on February 28, has continued to weigh heavily on shipping through the vital waterway.
On Tuesday, a projectile struck a vessel travelling through the Strait of Hormuz, marking the latest incident to disrupt maritime traffic. Tracking data indicated that vessel crossings remained in the single digits, despite a modest increase from levels recorded over the weekend.
Iran has meanwhile been holding negotiations with Oman over an arrangement to manage traffic through the Strait. Tehran said the two countries were close to reaching an agreement.
However, US President Donald Trump reacted to the negotiations by threatening military action against Oman, a longstanding US ally and security partner.
Implications for Nigeria
For Nigeria, sustained higher crude oil prices could provide a boost to government revenues and foreign exchange earnings, particularly if the country maintains its recent gains in oil production.
According to the Organisation of the Petroleum Exporting Countries (OPEC), Nigeria’s average daily crude oil production rose to 1.505 million barrels per day (bpd) in July.
Higher production combined with stronger international oil prices could improve Nigeria’s fiscal position and support foreign exchange inflows, although the overall benefit will depend on the duration of the price increase and developments in global oil markets.
