Crude oil prices climbed on Wednesday as markets reacted to mounting concerns about potential disruptions to Iranian oil supplies amid fears of a possible US strike on Iran and retaliatory threats from Tehran.
Global benchmark Brent crude rose 1.13 per cent to $66.21 per barrel, while US West Texas Intermediate (WTI) crude gained 1.05 per cent to $61.79 per barrel.
The price uptick followed warnings from Iranian authorities that they might target American bases in neighbouring countries hosting US troops if Washington carries out military action, a deterrent linked to escalating political tensions and protests in Iran.
Unrest in Iran began on December 28, 2025, triggered by the collapse of the Iranian currency and widespread economic hardship.
Protests have since spread from Tehran to many towns and cities nationwide, evolving into broader anti-government demonstrations.
On Monday, US President Donald Trump encouraged Iranians to continue protesting, declaring that “help is on the way,” a statement that fuelled speculation about possible US intervention even though details on the nature of the assistance were not specified.
Human rights groups and security officials reported a significant escalation in the protests, with thousands of casualties reported as unrest deepens.
The recent gains have pushed global crude prices back above Nigeria’s 2026 federal budget oil benchmark of $64.85 per barrel, a level set in the N58.18 trillion 2026 budget presented by President Bola Tinubu on 19 December 2025.
The benchmark is considered “conservative” given ongoing volatility in energy markets.
Analysts noted that geopolitical risk premiums, especially involving major oil producers like Iran, can have outsized effects on crude prices, as markets price in the possibility of supply disruptions even before actual production is affected.
Continued tension in the region is likely to keep oil markets sensitive to political developments in the weeks ahead.
