Oil surges past $100 for first time in four years amid Iran war

Global oil prices climbed sharply on Sunday, breaking above $100 per barrel for the first time in four years as the escalating conflict involving the United States, Israel and Iran continued to disrupt energy markets and threaten critical supply routes.

International benchmark Brent crude rose more than 20% to around $110 per barrel, while West Texas Intermediate crude oil futures in the United States jumped over 25%, approaching $115 per barrel. The surge followed an already steep rally last week that pushed crude prices up by roughly 30%.

The last time oil traded at such elevated levels was shortly after the Russian invasion of Ukraine in February 2022, when global energy markets were jolted by fears of supply disruptions.

Energy traders say the latest spike reflects mounting concerns that the widening conflict could further constrain oil production and shipping from the Middle East, a region responsible for a significant share of global crude exports.

Several oil-producing countries have already begun adjusting output in response to the volatility. State energy companies in Kuwait and the United Arab Emirates signalled they were managing production levels, with Kuwait confirming that it had trimmed output while the UAE suggested it was moderating supply.

Meanwhile, Iraq, the second-largest producer within the Organization of the Petroleum Exporting Countries, has already cut production significantly in recent days, according to multiple reports.

A major factor driving market anxiety is the disruption to shipping through the Strait of Hormuz, a critical maritime chokepoint off Iran’s southern coast that handles a large portion of the world’s oil and liquefied natural gas exports. With tanker movements through the strait severely restricted, traders fear global supply could tighten further if the situation worsens.

Fuel Price Hikes in Nigeria

The impact is already being felt beyond international markets. Consumers in several countries have already begun seeing higher prices at fuel pumps, and analysts expect further increases if the conflict continues to disrupt supplies.

In Nigeria, the national average price of petrol has surged to more than ₦1,050 per litre from N860 as higher crude costs ripple through global fuel markets.

Energy analysts note that increases in crude prices typically translate into higher retail fuel costs. In the United States, each $1 rise in crude oil prices is estimated to add roughly 2.5 cents to the price of gasoline.

Despite the rising energy costs, U.S. President Donald Trump has downplayed concerns about the economic impact. Speaking last week, he said he was not worried about the spike in oil and gasoline prices, arguing that they would likely fall once the conflict ends.

“Prices will drop very rapidly when this is over,” Trump said, adding that the geopolitical stakes outweighed temporary increases in fuel costs.

Writing on social media on Sunday, the U.S. president described the surge in oil prices as “a very small price to pay for U.S.A., and world, safety and peace.”