…Nigeria, Pope Sue for Peace
…Ghana Moves to Evacuate Citizens
By Franklin Adole
The global economy braced for fresh turmoil Sunday night as crude oil prices surged and investors rushed toward safe-haven assets following the escalating military confrontation between the United States, Israel, and Iran.
With joint U.S.-Israeli airstrikes striking Tehran and Iranian forces retaliating across the Gulf, energy markets signalled the likelihood of a sharp spike in oil prices when futures trading resumes. Analysts warned crude could climb $5 to $10 per barrel in early trading, with the risk of prices surging toward $80, or even $100, should the conflict disrupt the Strait of Hormuz, described as the world’s most critical oil “chokepoint.”
Roughly one-fifth of global oil supply passes daily through the narrow waterway off Iran’s southern coast. Reports that Iranian authorities warned vessels against passage have already rattled maritime traffic, with some tankers halting movement and shipping insurers reassessing potential risks. Any sustained disruption is expected to reverberate instantly through global energy markets, driving up petrol prices, fuelling inflation, and threatening fragile economies like Nigeria.
Nigeria’s Bonny Light, like Brent crude, had already risen nearly three per cent to about $73 before markets closed, reflecting mounting fears of escalation. Though the Organisation of the Petroleum Exporting Countries (OPEC) and its allies announced a production increase of 206,000 barrels per day, energy strategists cautioned that additional output may do little to calm markets if shipping routes remain constrained.
Asian economies, particularly China and India, stand most exposed to supply shocks, with China sourcing a significant share of its crude imports through the Gulf corridor. Analysts warn that even partial disruption of Iranian exports could tighten global supply and send prices sharply higher.
While higher oil prices could bring in more revenue for Nigeria, the country’s post-deregulation realities would see Nigerians take a beating at the fuel pumps as petrol prices will undoubtedly soar.
Globally, financial markets are bracing for risk-off trading as the week opens. Gold and the U.S. dollar strengthened in weekend indications, while equities signalled potential pullbacks. Energy-linked assets surged as investors positioned for volatility. The ripple effects are already spreading across aviation and shipping, with more than 1,800 flights cancelled across parts of the Middle East over the weekend amid widespread airspace closures. Major carriers suspended routes, and global port operators slowed operations as security concerns mounted.
Amid the rising tension, Nigeria joined international calls for restraint. The Federal Government urged all parties to prioritise dialogue and adhere strictly to international law, warning of grave consequences for regional and global stability. Foreign Affairs Minister Yusuf Tuggar emphasised diplomacy over confrontation, reiterating Nigeria’s longstanding commitment to multilateral engagement and peaceful resolution of disputes.
Ghana has activated emergency measures to evacuate nationals from the Middle East if necessary, recalling embassy staff from Tehran while retaining essential personnel to coordinate assistance.
At the Vatican, Pope Leo XIV issued a solemn appeal during his Angelus address, urging leaders to halt what he described as a dangerous spiral of violence. Stability and peace, he said, cannot be built on threats or weapons but through responsible dialogue, warning that uncontrolled escalation could trigger catastrophic consequences.
Analysts who spoke to KTH Daily maintain that the coming days now hinge on whether the confrontation deepens or abates. “If the Strait of Hormuz remains effectively closed or regional oil infrastructure becomes a sustained target, the world could face an energy shock with far-reaching implications, from fuel pumps in Lagos and London to trading floors in New York and Shanghai,” pointed out one observer.