US-Israel-Iran war: Oil, gas prices surge as strikes disrupt Middle East supply

.FG calls for de-escalation, restraint

.Dangote Refinery, depot owners halt petrol sales amid oil price spike

.Refinery raises petrol price to N875 per litre

.Inflation rise looms in Nigeria –Centre

.Trump warns Iran about larger strikes as war spirals in Middle East

UGO AMADI  and JONAS EZIEKE, Abuja

Global oil and gas prices climbed sharply on Monday as Iran continued missile and drone strikes across the Middle East in retaliation for ongoing attacks by the United States and Israel, raising fears of wider disruption to energy supplies.

As reported by the BBC, natural gas prices spiked by nearly 50 per cent after state-owned QatarEnergy suspended liquefied natural gas production following alleged military attacks on its facilities.

Brent crude, the global oil benchmark, jumped 10 per cent to more than $82 per barrel after at least three vessels were attacked near the Strait of Hormuz over the weekend.

Prices later eased to around $79 per barrel, while US-traded crude rose 7.6 per cent to $72.20.

Iran has warned ships against passing through the Strait of Hormuz — a critical maritime chokepoint through which about 20 per cent of the world’s oil and gas flows.

Shipping traffic at the entrance to the strait has slowed dramatically, with analysts warning that prolonged hostilities could push oil prices above $100 per barrel.

Qatar’s Ministry of Defence said a drone launched from Iran targeted a facility in Ras Laffan Industrial City, prompting QatarEnergy to halt LNG production.

Another drone reportedly struck a water tank at a power plant in Mesaieed, south of Doha.

In neighbouring Saudi Arabia, Aramco temporarily shut down its major oil refinery at Ras Tanura after it was hit by a drone.

The UK Maritime Trade Operations Centre reported that two vessels were struck in separate incidents, while an “unknown projectile” exploded near a third ship.

Iran’s Islamic Revolutionary Guards Corps claimed that three UK and US tankers had been hit, although London and Washington have not commented.

More than 150 tankers have anchored in Gulf waters beyond the Strait of Hormuz, according to shipping data, as operators assess security risks.

It will be recalled  on Sunday that Danish shipping giant Maersk paused sailings through the Bab el-Mandeb Strait and the Suez Canal, rerouting vessels around the Cape of Good Hope.

.FG calls for de-escalation, restraint

Meanwhile ,The Federal Republic of Nigeria has expressed deep concern over the rising tensions in the Gulf region and the risk of further escalation with potentially grave consequences for regional and global stability.

This is contained in a statement issued to newsmen by the Spokesperson of the Ministry of Foreign Affairs Mr. Kimiebi Ebinefa on Sunday in Abuja

Nigeria he said calls on all parties to exercise maximum restraint and refrain from actions that could intensify hostilities, and prioritise dialogue over confrontation.

It urges strict adherence to the provisions of the United Nations Charter and the Geneva Convention, particularly taking into cognizance the respect for sovereignty, territorial integrity, and the peaceful settlement of disputes.

In this regard, Nigeria emphasizes the imperative of restraint in the use of lethal force, to prevent further loss of civilian life and avoid any actions that could undermine or abrogate established norms of international law.

The preservation of the existing legal architecture that regulates and limits the use of force remains essential to the protection of victims, the safeguarding of civilian populations, and the maintenance of international order.

As a longstanding advocate of non-alignment, multilateralism, and constructive engagement, Nigeria supports renewed diplomatic efforts within established international and regional frameworks to resolve the crisis.

We welcome initiatives aimed at confidence-building, mediation, and dialogue, and encourage all stakeholders and parties in the conflict to pursue peaceful resolution in the interest of collective security and shared prosperity.

The Government of Nigeria the release said stands in solidarity with the international community in its call for calm and remains steadfast in its conviction that sustainable peace can only be secured through diplomacy, mutual respect, and faithful adherence to international law.

 

Dangote Refinery, depot owners halt petrol sales amid oil price spike

.Refinery raises petrol price to N875 per litre

However, in the local market,  Dangote Petroleum Refinery has suspended petrol loading operations effective midnight, 2nd March, 2026, following a sharp surge in global crude oil prices that crossed the 80-dollar per barrel threshold overnight, triggering widespread reactions across Nigeria’s downstream petroleum market.

The Dangote Petroleum Refinery has increased its Premium Motor Spirit gantry price by N101, raising the ex-depot rate from N774 to N875 per litre, heightening concerns over fresh fuel price increases across the country.

A senior official at the refinery confirmed the development to The PUNCH on Monday, noting that the adjustment followed recent volatility in global crude oil prices.

“Yes, the price has been reviewed. The new gantry price is now N875 per litre from N774. The review became necessary due to changes in global crude fundamentals and replacement costs,” the official said.

Checks conducted by Petroleumprice.ng confirm that Premium Motor Spirit (PMS) loading was halted at exactly midnight, effectively stopping petrol sales and product lifting at the refinery. The suspension also means that the issuance of Proforma Invoices (PFI) has been put on hold, indicating that fresh petrol transactions are currently suspended.

A petroleum correspondent at the refinery observed that while PMS loading has been stopped, Automotive Gas Oil (AGO), commonly known as diesel, continues to load. The operational adjustment, therefore, applies strictly to petrol, as diesel supply remains ongoing.

Depot Owners Across Nigeria Also Halt Sales

Further checks by Petroleumprice.ng reveal that the refinery’s move coincided with a broader response among private depot owners nationwide. Several depots across key petroleum hubs did not sell petrol during the trading day, as traders and marketers reassessed pricing positions in light of the crude oil rally.

Market sources confirmed that many depot owners suspended PMS sales and loading activities, reflecting caution over potential replacement cost increases following the global oil price spike.

The coordinated slowdown suggests heightened sensitivity within the downstream market to international crude movements.

Diesel Price Surges in Lagos

Although petrol sales were largely inactive, limited diesel transactions were recorded in Lagos. A few depots sold AGO at approximately 1,100 naira per litre, representing a significant increase from the average of 890 naira per litre recorded on Friday.

The sharp adjustment underscores the immediate impact of rising crude prices on refined product pricing.

Response to Global Crude Rally

The suspension of petrol loading at the Dangote Refinery, alongside the halt in sales by multiple private depot owners, appears directly linked to the overnight surge in crude oil prices above 80 dollars per barrel.

Industry players are understood to be reviewing pricing structures and market exposure before resuming PMS transactions.

With both the country’s largest refinery and several depot operators pausing petrol sales, supply activity across Nigeria slowed markedly, highlighting the strong transmission effect of global crude price movements on the domestic fuel market.

Further updates are expected as operators clarify new pricing positions and market conditions stabilize.

.Inflation rise looms in Nigeria –Centre

In another development, The Sea and Empowerment Research Centre (SEREC) says inflation could rise by three to five per cent in Nigeria amid ongoing conflict between the United States and Iran.

SEREC`s Head of Research, Eugene Nweke made this known in a statement on Monday in Abuja.

Nweke said the situation presents significant geopolitical and economic risks to global energy markets and maritime trade systems.

The News Agency of Nigeria (NAN) reports that Nigeria’s headline inflation eased slightly to 15.10 per cent in January, down from 15.15 per cent in December 2025, according to the National Bureau of Statistics’ Consumer Price Index report.

He particularly expressed concern on the vulnerability of the Strait of Hormuz, an important waterway between Iran and Oman through which approximately one-fifth of global crude oil supply transits daily.

NAN reports that Iran’s Foreign Minister Seyed Araghchi warned that the attacks by the U.S. and Israel on Iran, assassination of Iranian Supreme Leader Ali Khamenei will have “deep and widespread” consequences.

According to Nweke, any prolonged disruption could trigger sustained oil price volatility, freight rate escalation, war-risk insurance spikes and global inflationary pressure.

“SEREC scenario modeling indicates oil prices may range between 110 to 140 dollars per barrel under sustained tension.

“Global freight rates could increase 15 to 40 per cent due to rerouting and risk premiums.

“Marine war-risk insurance may surge 200 to 400 per cent in high-risk corridors.

“Emerging economies may face renewed inflation and currency depreciation risks,” he said.

He said even though Nigeria could record short-term fiscal gains from elevated crude prices, the risks were substantial of inflation rising driven by logistics and imported input costs.

He said exchange rate volatility could worsen and food and transport prices might surge, warning that without prudent fiscal discipline, revenue gains could be eroded by macroeconomic instability.

“At 120 dollars per barrel, additional oil revenue could reach 18 to 22 billion dollars annually.

“GDP growth may increase by one to 1.2 per cent in the short term,” he said.

The SEREC official said Nigeria’s refining capacity could provide a competitive edge if integrated with regional supply networks and backed by frameworks such as ECOWAS cooperation mechanisms.

He said that Nigeria should channel oil windfall gains into stabilisation and infrastructure investment, not recurrent expenditure and guarantee steady crude allocation to domestic refineries to sustain supply stability.

“SEREC advises to strengthen maritime security coordination across the Gulf of Guinea, expand strategic petroleum and refined product reserves and deepen regional trade integration to reduce overreliance on volatile extra-African shipping routes,” he said.

According to Nweke, the U.S. and Iran confrontation is more than a geopolitical conflict, it is a structural stress test for global trade and maritime systems.

He said Nigeria’s resilience would depend not merely on crude revenue gains, but on disciplined fiscal management, domestic refining optimisation, trade diversification and maritime competitiveness.

“The Dangote Refinery presents a strategic buffer but its effectiveness depends on coherent national policy alignment,” he said.

.Trump warns Iran about larger strikes as war spirals in Middle East

Also, President Donald Trump said the military operation is projected to last four to five weeks, but it could go longer.

President Donald Trump told CNN’s Jake Tapper the “big wave” is yet to come in the war with Iran. In separate remarks, Trump said Iran ignored his warnings over its nuclear program, and he did not rule out sending US troops to Iran if “necessary.”

US Defense Secretary Pete Hegseth called on Iranians to “take advantage” of the opportunity for regime change, even as he said the war was not about ousting the government in Tehran.

Expanding war: Israel and Hezbollah are trading blows as the conflict widens, while explosions have been heard in Gulf cities including Dubai, Abu Dhabi and Doha.

However,three US fighter jets were accidentally shot down by Kuwaiti air defenses in an apparent “friendly fire incident,” according to the US military. All crews are in stable condition.

Global shockwaves: Qatar’s state-run energy company has stopped its production of liquefied natural gas following an Iranian attack on its facility. The war has disrupted air travel, with airspace closed in the Middle East.

Global Disruption: The price of oil has risen sharply as the conflict disrupts supplies. Countries are also scrambling to evacuate their citizens from Gulf states under attack from Iran amid widespread flight cancellations and airport closures.