Uncertainty in oil market deepens as Brent hits $98

Global oil markets are facing renewed volatility as prices climb sharply amid persistent supply concerns and fragile geopolitical dynamics involving the United States and Iran. International benchmark Brent crude surged to $98.38 per barrel as of yesterday night while West Texas Intermediate was 89.58. The development reflects a tightening market driven by supply disruptions and […]

Global oil markets are facing renewed volatility as prices climb sharply amid persistent supply concerns and fragile geopolitical dynamics involving the United States and Iran.

International benchmark Brent crude surged to $98.38 per barrel as of yesterday night while West Texas Intermediate was 89.58.

The development reflects a tightening market driven by supply disruptions and strong demand signals.

At the heart of the tension is the Strait of Hormuz, a vital corridor through which a significant share of global oil supply passes.

Ongoing disruptions and a U.S.-led blockade on Iranian-linked shipping have heightened fears of constrained exports, keeping traders on edge.

Diplomatic efforts, however, remain uncertain. Pakistani officials indicated that an Iranian delegation is expected in Islamabad for a fresh round of talks with U.S. representatives.

Yet, Iran’s Parliament Speaker, Mohammad Bagher Ghalibaf, has rejected negotiations conducted under pressure, insisting Tehran will not engage while facing military threats.

Iran’s Foreign Minister, Abbas Araghchi, echoed similar concerns in discussions with Pakistan’s Ishaq Dar, accusing Washington of undermining diplomacy through continued threats and alleged violations of a ceasefire understanding.

Meanwhile, the Middle East war and the crisis at the Strait of Hormuz could redraw the global energy map as world’s most critical oil chokepoint is no longer seen as a reliable route for oil and gas supply, says Fatih Birol, the executive director of the International Energy Agency (IEA) as reported by oilprice.com.

As a result, the crisis could lead to the global energy flows being redrawn, the official added.

“Even if the Strait of Hormuz opens tomorrow, returning to the pre-war period will require significant time, a recovery process, and large volumes of capital,” Birol said.

The IEA has estimated that the recovery of output to pre-war levels could take up to two years.

The IEA estimated in its monthly report last week that global oil supply plunged by 10.1 million barrels per day (bpd) to 97 million bpd in March, due to attacks on energy infrastructure in the Middle East and ongoing restrictions to tanker movements through the Strait of Hormuz, leading to the largest disruption in history.

With the rise in crude oil prices, the hope of a reduction in prices of fuel in Nigeria is dashed by the day as many Nigerians continue to lament the cost of premium motor spirit (PMS) also known as petroleum which has worsened inflation.