Global crude oil prices climbed to $100 a barrel on Wednesday as the escalating war between the United States and Iran heightened concerns over the security of international oil shipments.
Brent crude, the global benchmark, gained 2.13 per cent to trade at $100 a barrel, its highest level in about six weeks, while US West Texas Intermediate rose 1.76 per cent to $94.67 per barrel.
The latest rally reflects growing fears that the conflict could further disrupt crude supplies and shipping routes, particularly in the Middle East.
According to Reuters, shipments through the Red Sea have come under increasing threat, as oil flows through the Strait of Hormuz have been severely disrupted since the conflict began on February 28.
The United States Central Command said its forces destroyed five Iranian crude oil carriers on September 8, following attempted missile attacks on a US Navy warship over two consecutive days.
Oil prices have experienced significant volatility since the outbreak of hostilities, with Brent crude rising as high as $125 a barrel on April 30.
Concerns over supply were further heightened on Tuesday after Saudi Arabia reported attacks by Yemen's Iran-aligned Houthi rebels on several energy facilities in the country's southern region.
The attacks reportedly triggered fires and resulted in the temporary suspension of some operations, adding to concerns about the vulnerability of energy infrastructure in the region.
In response to the uncertain market outlook, the Organisation of the Petroleum Exporting Countries and its allies agreed on September 6 to suspend planned increases in oil production and maintain current output levels in October.
The countries involved include Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman.
OPEC said the decision followed a review of developments in the global oil market and the outlook for supply and demand.
For oil-producing Nigeria, the sustained increase in international crude prices could have mixed implications, potentially improving government revenues while putting additional pressure on domestic fuel prices.
Petrol prices have already climbed above N1,300 per litre in parts of the country, meaning further increases in global crude prices could worsen the burden on motorists and consumers if local fuel costs rise further.
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