Global oil prices surged to $80 per barrel after United States President Donald Trump declared the interim ceasefire agreement with Iran over, escalating tensions in the Middle East.
According to market data, Brent crude climbed from $72 to $74 on Tuesday before reaching $80 on Wednesday, while West Texas Intermediate (WTI) crude rose to $75.40 per barrel.
The latest rally followed renewed hostilities after Iran reportedly attacked commercial vessels transiting the Strait of Hormuz, prompting retaliatory airstrikes by the United States.
Reports indicated that an LNG tanker sustained engine room damage after being hit, while a Saudi-flagged supertanker suffered minor damage off the coast of Oman.
In response, the U.S. Central Command (CENTCOM) launched airstrikes on more than 80 military targets across Iran, targeting key coastal locations and military installations.
The Trump administration also revoked a temporary sanctions waiver that had allowed Iran to export oil and petrochemicals, further tightening economic pressure on Tehran.
Iran subsequently announced the closure of the Strait of Hormuz, warning that commercial vessels attempting to pass through the strategic waterway could face military action.
The renewed conflict has pushed up tanker freight rates as shipping companies factor in higher security risks, while refiners in Asia are seeking alternative crude supplies from West Africa, the United States and Latin America.
The development comes as Nigerians had anticipated lower fuel prices following the recent decline in global crude prices.
However, the fresh spike in oil prices has raised concerns that petrol prices could increase again if tensions in the Middle East continue to escalate.
