Oil Price Jumps 5% To $87 Amid Trump-Iran Tensions

Global crude oil prices have surged by 5 per cent to hit $87 per barrel, up from the previous $83 per barrel.

This development follows a fresh rift between former United States President Donald Trump and Iran over the reopening of the crucial Strait of Hormuz, Naija News reports.

The global financial powerhouse, Bank of America, has raised the alarm that energy costs could climb even higher as winter approaches if both parties fail to settle their dispute and allow normal shipping activities to resume.

Speaking on CNBC, Francisco Blanch, Head of Commodities and Derivatives Research at Bank of America, warned that without a resolution, “we’re going to keep creeping higher into the winter.”

Blanch disclosed that only a tiny fraction of cargo vessels are currently navigating through the vital waterway, down drastically from the roughly 140 ships that previously traversed the route daily.

Nigeria Nets $22 Excess Revenue Per Barrel

Naija News understands that the rally pushed Brent crude, the global benchmark that determines the pricing for Nigeria’s Bonny Light and the OPEC Basket, to $87 per barrel.

This surge brings a significant windfall for the Federal Government.

Under the country’s ₦68.32 trillion 2026 budget, oil revenue was pegged at a conservative benchmark of $64.85 per barrel, an expected production target of 1.84 million barrels per day, and an exchange rate of ₦1,400/$.

With crude selling at $87, Nigeria is currently pulling in an excess revenue of $22.15 on every barrel produced.

Despite the sharp rise in international crude benchmarks, reports shows that Nigeria’s domestic fuel market has not yet adjusted to global developments.

Across key petroleum hubs in the country, prices for Premium Motor Spirit (PMS), commonly known as petrol, and Automotive Gas Oil, or diesel, experienced mixed movements.

A mid-day market report indicated relative stability in Lagos fuel depots, with a few facilities even granting slight price cuts.

At the African Terminal, petrol dropped by ₦4 per litre to sell at ₦1,165, down from ₦1,169. Aiteo trimmed its depot rate to ₦1,165 from ₦1,168, while NIPCO shaved off ₦2 to offer its product at ₦1,166 per litre.

Major operators Dangote and Pinnacle held their depot prices steady at ₦1,166 per litre.

However, higher rates persist in other sections of the Lagos market. Facilities such as GulfTreasure and Duport offered petrol at ₦1,550 per litre, while Rain Oil recorded the highest listed price at ₦1,580 per litre.

The varied figures reflect ongoing volatility in Nigeria’s downstream sector, where depot rates fluctuate based on location, availability, and individual operator strategies.

For motorists and business owners, the current market signals suggest pump prices could face fresh upward pressure in areas where depot rates are climbing, particularly if international crude prices maintain their upward trajectory.