Global energy markets experienced a significant shock on Wednesday as crude oil prices hit $115, marking the highest price point recorded since 2022.
This surge comes amid a volatile landscape characterized by ongoing geopolitical instability in the Middle East and a major shift in energy alliances, sending shockwaves through both stock exchanges and commodity markets worldwide.
Pan-Atlantic Kompass also reports that oil prices hit $115 as the United States is preparing for an ‘extended’ blockade of Iran.
Brent crude rose to around $115 (£85) a barrel on Wednesday, having closed at just over $110 (£81) on Tuesday evening. The price had fallen slightly to $114.37 (£84.68) just before midday BST.
It follows reports from the Wall Street Journal that U.S President Donald Trump has instructed aides to prepare to extend the obstruction of Iran’s ports, in an effort to squeeze the country’s economy.
Iran has said it will continue to disrupt traffic travelling through the Strait of Hormuz in response to the U.S blockade.
In related development, Dangote Refinery has increased the ex-depot price of petrol by N75.
The refinery announced the increase on Wednesday, hiking the price from N1,200 to N1,275 per litre.
In the same way, coastal prices have gone up to N1,215 per litre.
The price of oil has been swinging since the start of the U.S-Israel war with Iran as the key Strait of Hormuz – which usually carries about 20% of the global supplies of oil and liquid natural gas – has been effectively closed for weeks due to the conflict. It remains much higher than the pre-conflict price of a barrel.
The price of Brent crude dropped to $90 a barrel on 17 April, after a ceasefire between Israel and Lebanon was announced. The US said it would pause attacks on Iran on 8 April.
However, the oil benchmark has been rising steadily over the last 12 days, as the U.S continued its blockade.
On Wednesday, Trump urged Iran to ‘get smart soon’ and sign a deal, following days of deadlock in efforts to end the conflict.
In a post on Truth Social, Trump said the country ‘couldn’t get its act together.’
