The Digest:
Nigerian crude is edging towards 120 per barrel as the Middle East conflict shows no sign of ending. Data from the Central Bank of Nigeria showed that Bonny Light traded at about 117 per barrel, gradually returning to April levels when prices almost hit 140. Oil prices have surged from about 70 per barrel since the US-Iran war erupted, and the Strait of Hormuz, which handles about 20% of global oil transportation, was closed. Iran has submitted a response to the latest US proposal through mediator Pakistan.
Key Points:
- Higher crude prices mean Nigeria earns more dollars per barrel, boosting government revenue.
- However, Nigeria’s oil production and export capacity remain limited, reducing potential windfall gains.
- Rising global oil prices will likely increase domestic petrol costs, affecting transport and food prices.
- Iran’s demands include frozen assets release and lifting sanctions; the US wants Iran to dismantle its nuclear programme.
- Trump warns Iran, “the clock is ticking”, raising the risk of renewed military action.
Sources: The PUNCH, Al Jazeera, Axios
