Crude oil prices surged on Monday to $79 a barrel, the highest in over a year, following Israel-US strikes on Iran that raised fears of a prolonged Middle East conflict. Brent crude jumped over 9% to $79, while US West Texas Intermediate rose to $73.06 a barrel.
The attacks prompted the closure of the Strait of Hormuz, a key route for 20% of global oil shipments, sparking supply concerns and pushing Asian equity markets sharply lower in cities including Tokyo, Hong Kong, Singapore, and Mumbai.
Analysts warn that sustained oil price increases could drive global inflation, acting as an effective tax on businesses and consumers, and potentially reducing oil demand worldwide.
The price spike has also surpassed Nigeria’s 2026 budget benchmark of $64.85 per barrel, highlighting the impact on oil-dependent economies amid geopolitical tensions.
