Iran-Israel conflict: Oil prices jump to $77, beating Nigeria’s $75 budget mark

Iran-Israel conflict: Oil prices jump to $77, beating Nigeria’s $75 budget mark

Global oil prices surged past Nigeria’s 2025 budget benchmark of $75 per barrel on Tuesday, with Brent crude rising 5.29 percent to $77.04 per barrel, amid escalating tensions between Iran and Israel.

US West Texas Intermediate crude also climbed by 5.28 percent to $74.84 per barrel, reflecting market fears of supply disruptions following a series of strikes in the Middle East.

Reuters reported that Iran partially suspended gas production at the South Pars field, which it shares with Qatar, after a fire broke out due to an Israeli strike. In a related attack, Israel also targeted the Shahran oil depot in Iran.

On Friday, June 13, oil prices jumped by over 7 percent — the highest single-day gain in over four months — amid the deepening regional hostilities.

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The surge in oil prices signals a potential boost in revenue for Nigeria, whose 2025 budget is predicated on a $75 per barrel oil benchmark.

However, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) disclosed that the country’s crude oil production declined to 1.45 million barrels per day in May — 97 percent of its OPEC quota.

Despite the drop in output, Nigeria retained its position as Africa’s largest oil producer in May, according to the Organisation of the Petroleum Exporting Countries (OPEC), which also reaffirmed its 2025 global demand growth forecast of 1.3 million barrels per day.

Iran-Israel conflict: Oil prices jump to $77, beating Nigeria’s $75 budget mark