Oil Price Climbs To $85 As Middle East Tensions Escalate
By ESTHER McWILLIS-IKHIDE
GLOBAL oil prices climbed sharply on Tuesday, with Brent Crude rising to $85 per barrel, as escalating tensions involving the United States, Israel, and Iran intensified fears of supply disruptions in the Middle East.
The international benchmark gained about 8 per cent, marking its first return to the $85 level since June 2024 when it briefly touched $85.2 per barrel. Analysts say the surge reflects growing anxiety among traders over the potential impact of the conflict on global oil supply chains.
Meanwhile, West Texas Intermediate Crude, the main United States benchmark, also recorded strong gains, rising 6 per cent to $75.91 per barrel.
The increase places crude prices well above Nigeria’s 2026 budget benchmark of $64.85 per barrel, a development that could boost government revenue if sustained, though it may also fuel global inflationary pressures.
According to a report by the international news agency Reuters, the rally was triggered by disruptions to fuel shipments and concerns that the expanding conflict could threaten oil and gas supplies from the Middle East, one of the world’s most critical energy-producing regions.
The situation has already begun to affect energy infrastructure across the region. Several oil and gas facilities have either been damaged or shut down as a precautionary measure since hostilities intensified.
On Monday, QatarEnergy, the state-owned energy company of Qatar, halted production of liquefied natural gas (LNG) after Iranian military attacks targeted facilities linked to its operations. The company later announced a suspension of downstream production activities on Tuesday.
Market analysts warn that if the conflict deepens or spreads further across the region, global energy markets could experience additional volatility in the coming weeks.
