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Oil Prices Surge Past $85 as Iran Blockade and Hormuz Tensions Escalate

Brent crude oil prices have surged past the $85 threshold, marking a one-month high, driven by renewed US-Iran tensions and the reinstatement of a blockade on Iranian oil exports. The market is reacting to fears of prolonged disruptions in the Strait of Hormuz—a critical artery for global energy transit—which handles nearly 20% of global oil consumption. Adding to the market uncertainty is US President Donald Trump’s proposal of a 20% surcharge for the US to act as the "Guardian of the Hormuz Strait." Analysts warn that this development signals a significant reversal from recent diplomatic optimism, potentially leading to increased global energy market volatility and higher shipping costs. For Nigeria, the rise in crude prices offers a boost to export earnings and government revenue, though regional instability remains a primary concern for long-term price stability.

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