Oil, Gas Prices Surge as Iran Strikes Escalate; Dangote Refinery Raises Petrol Price to N875

Global oil and gas prices surged on Monday as Iran intensified missile and drone attacks across the Middle East in response to continued strikes by the United States and Israel, fuelling concerns over potential disruptions to global energy supplies.
According to BBC reports, natural gas prices jumped by nearly 50 per cent after QatarEnergy halted liquefied natural gas (LNG) production following reported military strikes on its facilities. Brent crude, the international oil benchmark, rose by 10 per cent to trade above $82 per barrel after at least three vessels were attacked near the Strait of Hormuz during the weekend.
Although prices later moderated to about $79 per barrel, US crude still gained 7.6 per cent to close at $72.20.
Iran has cautioned ships against navigating the Strait of Hormuz, a strategic route responsible for about 20 per cent of global oil and gas shipments. Shipping activity in the area has slowed significantly, with analysts warning that sustained conflict could drive oil prices beyond $100 per barrel.
Qatar’s Ministry of Defence disclosed that an Iranian-launched drone targeted a facility in Ras Laffan Industrial City, leading QatarEnergy to suspend LNG output. Another drone reportedly hit a water tank at a power plant in Mesaieed, south of Doha.
In Saudi Arabia, Aramco temporarily shut its major refinery in Ras Tanura after it was struck by a drone. The UK Maritime Trade Operations Centre confirmed that two vessels were hit in separate incidents, while an unidentified projectile detonated near a third ship.
Iran’s Islamic Revolutionary Guards Corps claimed responsibility for striking three UK and US tankers, though authorities in London and Washington have yet to respond. Shipping data indicates that more than 150 tankers have anchored in Gulf waters outside the Strait of Hormuz as operators reassess security conditions.
Domestically, Dangote Petroleum Refinery increased its ex-depot price for Premium Motor Spirit by N101, raising the gantry rate from N774 to N875 per litre. A senior refinery official attributed the adjustment to fluctuations in global crude prices and rising replacement costs.
Energy analysts have warned that Nigeria may face further hikes in petrol and diesel prices if crude oil exceeds $90 per barrel. They noted that prolonged Middle East tensions could strain supply chains, escalate freight and insurance expenses, and increase import and refining costs, despite improvements in local refining capacity.
Financial markets also reacted to the geopolitical tensions. In the United States, the Dow Jones Industrial Average fell nearly one per cent at opening trade, with the Nasdaq and S&P 500 also declining. London’s FTSE 100 dropped one per cent, while France’s CAC 40 and Germany’s DAX recorded sharper losses of 1.8 per cent and 2.1 per cent respectively. Meanwhile, gold prices rose two per cent to $5,388 per ounce, reflecting increased investor demand for safe-haven assets.