By Obinna Uballa
Crude oil prices surged on Monday, reaching $79 per barrel, the highest level in over a year and well above Nigeria’s 2026 budget benchmark of $64.85.
Brent crude, the global benchmark, climbed more than 9 percent to $79 per barrel, after touching an early trading high of $82. US West Texas Intermediate (WTI) also rose over 9 percent, trading at $73.06 per barrel.
The spike comes amid escalating geopolitical tensions in the Middle East. On Saturday, United States-Israeli strikes targeted Iranian sites, resulting in the deaths of Iran’s Supreme Leader Ayatollah Ali Khamenei, armed forces chief Abdolrahim Mousavi, and several close family members, including Khamenei’s daughter, grandchild, daughter-in-law, and son-in-law.
In retaliation, Iran launched multiple missile strikes across the region, raising fears of a broader conflict that could destabilize global energy markets.
The crisis has disrupted maritime traffic. Shipping giants including Maersk, Mediterranean Shipping Company (MSC), and CMA CGM have suspended sailings through the strategic Strait of Hormuz and the Suez Canal-Bab el-Mandeb corridor due to security threats. These routes are critical, carrying roughly 20 percent of the world’s seaborne oil and liquefied natural gas (LNG).
Analysts warn that a prolonged surge in oil prices could stoke global inflation, acting as a hidden tax on businesses and consumers, and potentially slowing economic growth and energy demand worldwide.
For Nigeria, the oil price rally brings a silver lining. The current price of $79 per barrel surpasses the country’s 2026 budget benchmark of $64.85 per barrel, offering potential relief to government finances amid fiscal pressures.
