Israel-Iran Conflict Pushes Oil Prices Below $70 — Experts Warn of Future Spike.
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- Israel-Iran Conflict Pushes Oil Prices Below $70 — Experts Warn of Future Spike.
Israel-Iran Conflict Pushes Oil Prices Below $70 — Experts Warn of Future Spike.
Despite escalating tensions between Israel and Iran, crude oil prices have unexpectedly dipped below $70 per barrel, though experts predict a potential rebound beyond $90 if the conflict worsens.
Over the weekend, oil prices stood at $77 per barrel but fell to $71 following a U.S. strike on Iranian targets on Sunday.
In an interview with Energy Vanguard, Dr. Diran Fawibe, Chairman of International Energy Services Limited, explained that any disruption to global oil supply routes typically causes prices to rise. He warned that a significant supply interruption or a closure of the strategic Strait of Hormuz—through which a large portion of the world’s oil flows—could lead to a sharp increase in prices.
“Once oil buyers start doubting supply stability, shortages become a real risk. That supply-demand imbalance can trigger steep price hikes,” Fawibe said.
Supporting this view, Professor Wumi Iledare, a petroleum economics expert, acknowledged that geopolitical tension adds short-term risk premiums to oil prices. However, he noted that unless physical supply is directly affected—particularly at the Strait of Hormuz—long-term price escalation is uncertain.
For Nigeria, Iledare pointed out that while higher oil prices might temporarily boost export revenues, they could also heighten inflation and encourage fiscal indiscipline. Without meaningful structural reforms, he warned, the country could face deeper economic vulnerabilities.
Dr. Muda Yusuf, Director of the Centre for the Promotion of Private Enterprise, highlighted broader global concerns. He noted that the Israel-Iran conflict has further complicated a fragile world economy already under pressure from the ongoing Russia-Ukraine war and U.S. tariff tensions.
He added that a rise in oil prices could improve Nigeria’s foreign exchange earnings, especially if production levels improve. “This would also strengthen foreign reserves, enhance forex liquidity, and help stabilize the naira,” he said.
Currently, the oil sector contributes about 50% of Nigeria’s government revenue. A sustained increase in crude prices, according to Yusuf, could enhance fiscal consolidation and help reduce the country’s budget deficit.
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Faith Kegh
Content & Editorial Manager - Leads the creation, review, and publication of high-quality news and media content. She ensures that all editorial work reflects the organization’s standards of accuracy, professionalism, and relevance, while also engaging and informing the audience.
As the key driver of TokinPoint Media LTD's editorial voice, the manager oversees content planning, assigns tasks to writers or editors, enforces deadlines, and ensures consistency across all platforms. She also plays a strategic role in aligning content with audience interests and search engine optimization (SEO) best practices.