The digest:
Global crude oil prices have surged to $72 per barrel, the highest level since July 2025, as escalating military conflict between the US, Israel, and Iran threatens regional stability. Brent crude closed at $72.87 on Friday, while US West Texas Intermediate finished at $67.02, following a week of heightened tensions that began with failed nuclear talks in Geneva and culminated in coordinated US-Israeli strikes on Iran and Iranian retaliatory missile attacks on American bases across the Gulf region. Explosions were reported in Abu Dhabi, Manama, Doha, Kuwait, and Riyadh, with Bahrain confirming a strike on the US Navy's Fifth Fleet headquarters. Analysts warn that the conflict poses "asymmetric upside risk" for oil prices amid potential supply disruptions. Meanwhile, OPEC and its allies are expected to consider increasing output by 137,000 barrels per day for April at their March 1 meeting.
Key Points:
- The price surge directly impacts global fuel costs, affecting consumers and businesses worldwide.
- For Nigeria, higher oil prices could boost government revenues but also increase domestic fuel subsidy burdens.
- The conflict threatens material supply disruptions from one of the world's most critical oil-producing regions.
- OPEC's potential output increase reflects efforts to stabilize markets amid escalating geopolitical uncertainty.
- Saudi Arabia's expected price hike to Asia signals shifting demand patterns as buyers seek alternatives to Russian supplies.
The escalating Middle East conflict has immediately translated into oil market volatility, with prices climbing to multi-month highs and threatening broader economic repercussions if the crisis deepens.
Sources: Market Data, Analyst Reports, The Cable
