SOPURUCHI ONWUKA
Prices of Nigeria’s crude oil grades, including Brass River, Bonny Light, Qua Iboe, and other blends, remained elevated at $113 a barrel weekend after the White House said it would send envoys to Pakistan, where Iranian officials are also expected, raising tentative hopes that stalled US-Iran talks could resume and eventually reopen the Strait of Hormuz.
Generally, prices of key global benchmark crude grades moderated at the weekend with the reference Brent grade closing the week at $105.330 per barrel, and WTI also leveling at $94.400 per barrel as uncertainty continued to unsettle global markets.
Market reports seen by Daily Champion indicate that sentiments still rule the markets, with traders focusing less on the pause in the Iran war and more on the risk of renewed disruption to supply.
Analysts from global advisory firms note that the fragile truce between the United States and Iran has done little to restore confidence in the steady flow of crude through the Strait of Hormuz through which some 20 percent a fifth of the world’s oil and liquefied natural gas flow.
Although large-scale hostilities have paused, shipping traffic through the waterway remains constrained by security concerns, naval deployments and the threat of further attacks; situations that build geopolitical risk premium firmly into energy prices.
The conflict has significantly disrupted the global shipping industry, particularly oil tanker operations. Maritime traffic through the strait has slowed sharply as vessel operators weigh the risks of entering the area, while war-risk insurance premiums have surged, raising the cost of transporting crude.
Some tankers have been delayed or rerouted, while others remain anchored as operators await clearer security conditions. The disruption has effectively turned one of the world’s busiest oil corridors into a bottleneck, tightening supply to international markets.
The slowdown has had a direct impact on the flow of crude from key Gulf producers, including Saudi Arabia and the United Arab Emirates, to major buyers in Asia and Europe. With access through the strait limited, exporters have increasingly turned to alternative routes such as pipelines that bypass the waterway.
However, these alternatives provide only partial relief, as their combined capacity is significantly lower than the volumes typically shipped by sea, resulting in delayed cargoes and reduced export availability.
As a result, global supply chains have come under strain. Buyers are facing longer delivery times and higher freight costs, while refiners in key consuming regions are adjusting procurement strategies to account for uncertainty in arrival schedules. The tightening supply picture has contributed to sustained volatility in spot markets, where prices react quickly to any perceived shift in geopolitical risk.
The broader economic impact is also becoming more visible. Higher oil prices are feeding into increased transportation and production costs worldwide, adding pressure to already fragile supply chains.
Industries reliant on fuel, including aviation and manufacturing, are experiencing rising operating expenses, while shipping disruptions have extended beyond energy cargoes to affect wider maritime trade flows.
Despite the ceasefire, tensions remain high. Iran has maintained pressure on maritime traffic in the region, while the United States continues its naval presence and blockade measures on Iranian ports.
At the same time, diplomatic efforts to stabilize the situation are ongoing but complicated by the absence of direct talks between the two sides. Negotiations are instead being conducted indirectly, with intermediaries attempting to bridge gaps that remain substantial.
The limited reopening of Iranian airspace and the resumption of some international flights signal a cautious attempt by Tehran to ease internal pressures and project stability, but these steps have not been enough to reassure markets about the security of energy supplies.
For now, oil markets are being driven as much by geopolitical uncertainty as by physical supply and demand. Analysts say a sustained easing of tensions, including the full reopening of the Strait of Hormuz and a credible diplomatic breakthrough, would be required to bring prices down and restore normal shipping patterns.
Until then, the flow of oil from the Gulf to international destinations is likely to remain uneven, with businesses and governments bracing for continued volatility.
