By Obas Esiedesa, Abuja
Global oil prices surged by 14 per cent to almost $85 per barrel yesterday as the escalating conflict between the United States and Iran intensified fears of prolonged disruptions to global crude supplies.
Brent crude, the international benchmark, climbed to $84.37 per barrel, up from $76.01 on Sunday, extending a sharp rally that began on Monday, driven by renewed military hostilities between the US and Iran, and growing concerns over the security of crude exports from the Middle East.
The latest increase follows the exchange of fresh attacks between the United States and Iran from Saturday till yesterday, while Tehran announced the closure of the Strait of Hormuz, one of the world’s most strategic oil shipping routes, through which about one-fifth of global crude supplies pass.
The price rally was also fueled by uncertainty over the United States’ trade and sanctions measures. In a post on his Truth Social platform on Tuesday, US President Donald Trump said he had decided to replace the proposed 20 per cent United States reimbursement fee with trade and investment agreements involving Gulf States
