Global oil prices rose to $91 per barrel on Tuesday as expectations for a diplomatic resolution to the Middle East conflict faded.
Brent crude surged 1% to reach $91.76 per barrel, while US West Texas Intermediate (WTI) similarly advanced 1% to trade at $85.24 per barrel.
The price escalation comes after Iran pledged to adopt a more aggressive stance and the United States opted against extending the temporary ceasefire, intensifying fears over potential energy supply disruptions.
Uncertainty continues to mount that the escalation—initiated by US and Israeli strikes on Iran on February 28—will drag on as peace talks remain stalled and commercial tanker transport through the critical Strait of Hormuz remains disrupted.
Tracking data showed that maritime crossings remained in single digits, despite a small uptick over the weekend.
Iran and Oman have been negotiating an arrangement to manage the Strait of Hormuz, with Iran reporting that both countries were close to reaching a deal.
However, US President Donald Trump responded to the talks by threatening military strikes against Oman, a key strategic partner of the United States in the region.
Meanwhile, rising global crude oil prices alongside boosted output could expand Nigeria’s foreign exchange earnings and overall government revenue.
According to data from the Organization of Petroleum Exporting Countries (OPEC), Nigeria’s average daily crude oil production increased to 1.505 million barrels per day (bpd) in July.
Backstory…
Global oil prices have continued to fluctuate since the inception of the Iran-US crisis. Additionally, the ongoing battle over control of the Strait of Hormuz has further escalated the issue.
On Monday August 17, US President Trump urged that Iran surrender in order to end the war with the United States.
Trump stated that Iran should “put up the white flag of surrender” in a phone interview with a Fox News reporter on Monday, indicating that his administration was still applying pressure on Tehran in spite of continuous attempts to resume talks.
This comes after the US president vowed that Iran will receive more economic pressure . He also disclosed that he intends to declare the Strait of Hormuz a U.S. territory once military operations against Iran conclude.
Read Also: Surrender or Face Military Strikes- President Trump Warns Iran
