Nigerian crude oil prices have climbed sharply, edging closer to the $120 per barrel mark as the conflict in the Middle East continues to disrupt global oil supply chains.
According to data from the Central Bank of Nigeria, Bonny Light, the country’s flagship crude grade, was trading at approximately $117 per barrel recently. This represents a strong recovery toward the April 2026 highs when prices nearly touched $140 per barrel.
Nigerian crude typically commands a premium over the international benchmark, Brent crude. Since the outbreak of hostilities between the United States and Iran, global oil prices have surged from around $70 per barrel, driven by fears of major supply disruptions.
The closure of the Strait of Hormuz a critical chokepoint responsible for roughly 20% of global oil transportation has significantly contributed to the price rally.
Diplomatic Developments
Tensions remain high despite ongoing mediation efforts. According to Al Jazeera, Iran has submitted a formal response to the latest United States proposal aimed at ending the conflict, with Pakistan acting as the mediator.
Market analysts believe that as long as the geopolitical situation in the Middle East remains unresolved, oil prices are likely to stay elevated. This development offers some fiscal relief for Nigeria, Africa’s largest oil producer, as higher crude prices boost government revenue and foreign exchange earnings.
However, experts caution that the gains remain highly sensitive to any sudden de-escalation or further escalation in the conflict. A peaceful resolution could trigger a sharp reversal in oil prices, while prolonged instability may push prices even higher in the coming weeks.
