Oil prices edged higher on Monday as market participants reacted to renewed geopolitical risks following threats by U.S. President Donald Trump to impose secondary tariffs on buyers of Russian crude and possible military action against Iran.
Brent crude oil, against which Nigerian oil is priced, rose by 0.95 percent to trade at $73.45 per barrel while West Texas Intermediate (WTI) gained 0.98 percent to settle at $70.04 per barrel.
The front-month Brent contract, set to expire later in the day, traded at $74.39 per barrel, up 1.03 percent.
Trump warned on Sunday that buyers of Russian crude could face tariffs ranging between 25 percent and 50 percent if Moscow fails to cooperate in efforts to resolve the ongoing war in Ukraine.
He also threatened Iran with sanctions and military action should Tehran refuse to reach a new agreement on its nuclear program.
The announcement added renewed uncertainty to the oil market, raising concerns over potential disruptions in global crude supply.
Russia is the world’s second-largest oil exporter, with China and India being the main buyers of its discounted barrels.
Analysts noted that secondary sanctions could greatly affect Russian oil flows if fully enforced.
Despite the initial market reaction, some traders remained cautious. Analysts pointed out that the absence of immediate action from the U.S. has limited the extent of price gains.
UBS analyst Giovanni Staunovo highlighted that the threat alone was sufficient to influence sentiment, but the market will require concrete developments to sustain a prolonged rally.
In addition to geopolitical factors, market participants are also tracking the stalled negotiations between Iraq and Turkey on the resumption of crude exports from the Kurdish region through the Iraq-Turkey pipeline.
Disagreements over payments and contracts have delayed the restart of the pipeline, limiting supply from the region.
Oil prices have remained within a tight range in recent weeks as traders balance geopolitical risks against concerns over global demand.
Analysts expect Brent and WTI to continue trading between $65 and $75 per barrel in the short term pending further clarity on U.S. sanctions and broader supply dynamics.
Market sentiment remains sensitive to developments related to U.S. foreign policy, OPEC+ production decisions, and global demand indicators.
