Oil prices near $90 as Hormuz crisis deepens

Oil prices have risen to nearly $90 per barrel over the weekend, extending their rally as escalating tensions between the United States and Iran disrupted shipping through the Strait of Hormuz and heightened concerns about a broader supply shock in the Middle East.

Data from Oilprice showed Brent crude rose to $88.10 per barrel, up 4.59 percent, while West Texas Intermediate (WTI) gained 4.48 percent to $82.49 per barrel, marking the highest levels since April.

The latest gains came after another night of US military strikes on Iranian targets, raising concerns that the conflict could further disrupt crude exports through the world’s most important oil transit route.

Brent has now rallied by more than $10 a barrel in recent sessions, reflecting a growing geopolitical risk premium as hopes for a diplomatic breakthrough continue to fade.

The Strait of Hormuz carries about 20 percent of global oil consumption and a significant share of the world’s liquefied natural gas exports.

Any prolonged disruption to shipping through the waterway is expected to tighten global supplies and keep oil prices elevated.

Read also: Oil price hits $85 as Trump revives Iran blockade, Hormuz risks deepen

Shipping traffic through the strait has slowed as tanker operators reassess security risks following attacks on commercial vessels and increased military activity in the Gulf.

The latest escalation includes continued US strikes on Iranian military infrastructure and efforts to curb Tehran’s oil exports, prompting fears that the conflict could spread beyond Hormuz to the Bab el-Mandeb Strait, another strategic route linking the Red Sea to global markets.

Analysts said the deteriorating security situation is reinforcing expectations of tighter near-term supply, with Brent’s futures curve remaining in backwardation. This market structure signals strong immediate demand for crude.

For Nigeria, higher oil prices provide a significant fiscal windfall. Brent trading close to $90 per barrel remains well above the Federal Government’s 2026 budget benchmark of $64.85 per barrel, supporting crude export earnings, foreign exchange inflows and government revenues.

However, sustained gains in crude prices could also translate into higher global fuel costs and renewed inflationary pressures, particularly for oil-importing economies.

Market participants are now closely watching military developments around Hormuz and tanker movements through the Gulf, with further escalation likely to determine whether crude prices breach the $90-per-barrel mark in the coming days.