Crude oil prices advanced on Tuesday as rising tensions between Israel and Iran renewed supply disruption concerns across global energy markets.
Both Brent crude and West Texas Intermediate (WTI) posted modest gains as they extended their volatility that began with Israel’s airstrikes on Iranian territory last Friday.
Brent crude oil, against which Nigerian crude oil is priced, rose 0.5% to $73.57 per barrel while U.S. WTI climbed 0.4% to $72.06 per barrel.
The Israeli government confirmed that it conducted a preemptive air operation targeting strategic infrastructure in Iran, citing threats of nuclear weapon development by Tehran.
In response, Iran launched retaliatory attacks, raising alarm over the stability of the oil-rich region. Iranian officials reported over 220 civilian deaths, while Israel confirmed 24 casualties.
The increased hostility has already affected regional energy infrastructure. Iran’s crude exports from its Kharg Island terminal have reportedly dropped, while Israel has temporarily shut two of its three offshore natural gas fields.
The military escalation has elevated risk premiums across the oil market as traders reassess supply outlooks.
Market analysts noted that the escalation came at a time when global crude inventories remain relatively tight, and OPEC+ production cuts are still in effect.
The risk of further supply disruption, particularly if transit through the Strait of Hormuz is affected, has triggered renewed buying interest among oil traders.
“Investor concerns over war risks are contributing to market volatility,” said Priyanka Sachdeva, senior market analyst at Phillip Nova. “The conflict is adding a risk premium to oil prices amid broader macroeconomic uncertainty.”
The situation has drawn international attention, with the G7 reiterating its support for Israel’s right to self-defense while warning Iran against developing nuclear weapons. U.S. President Donald Trump, in a social media post, urged Americans to evacuate Tehran, while Secretary of State Marco Rubio held urgent consultations with key Western allies.
Russia has indicated that OPEC+ may consider adjusting output levels to mitigate the impact of further disruptions. Deputy Prime Minister Alexander Novak stated that the alliance is closely monitoring developments and remains prepared to stabilize global supply if necessary.
The geopolitical shock comes ahead of the U.S. Federal Reserve’s policy decision, adding another layer of complexity to investor sentiment. A combination of central bank tightening and regional instability could amplify volatility across both commodity and equity markets.
With crude benchmarks now in a reactive trading zone, analysts caution that sustained escalation could push Brent beyond the $75 threshold in the near term, particularly if export infrastructure or shipping routes in the Gulf are further compromised.
