Global crude oil prices surged above $111 per barrel on Thursday, October 22, 2026, as Iran claimed that seven vessels had been hit in separate incidents around the Persian Gulf and Strait of Hormuz, raising fresh concerns over disruptions to global energy supplies.
Checks by Nairametrics showed that Brent crude, the international oil benchmark, rose by 2.59% to $111.60 per barrel, while US West Texas Intermediate (WTI) traded at $98.98 per barrel, an increase of $2.25 from its previous level.
The latest rally brought crude prices close to levels recorded on Tuesday, when Brent reached $111.90 per barrel, its highest in five months, while WTI briefly climbed to $110.48 before both benchmarks retreated.
Iran claims seven vessels hit
The renewed surge in oil prices comes amid claims by Iran’s Islamic Revolutionary Guard Corps (IRGC) Navy that seven vessels were struck in separate incidents near the Strait of Hormuz, one of the world’s most important routes for transporting crude oil.
According to Reuters, the IRGC said on Thursday that four vessels allegedly involved in illegal oil transfers in the northern Persian Gulf were simultaneously struck and caught fire on Wednesday after being monitored by Iranian forces.
- The Iranian military also claimed that three additional vessels collided with naval mines west of the Strait of Hormuz, bringing the total number of affected vessels to seven.
- Following the incidents, the IRGC warned the United States military that continued provocations could trigger a broader military response targeting American bases across the Middle East.
- The reported incidents have renewed concerns over the security of oil shipments passing through the Strait of Hormuz, particularly as disruptions to major petroleum transportation routes continue to affect global energy markets.
The claims come amid renewed concerns that further disruptions to oil shipments through the strategic waterway could tighten global petroleum supplies and sustain upward pressure on crude prices.
Brent rebounds towards five-month high
Global crude oil prices have experienced significant volatility in recent days, as renewed attacks on energy infrastructure and diplomatic efforts to ease tensions in the Middle East continue to influence market sentiment.
On Friday, October 16, Brent crude climbed to $110 per barrel for the first time since May, following renewed attacks on energy infrastructure in the Middle East and Russia that heightened concerns over potential supply disruptions.
- The rally continued into Tuesday, October 20, when Brent briefly reached a five-month high of $111.90 per barrel before retreating as diplomatic engagements between Iran and Pakistan raised hopes of easing tensions in the region.
- Nairametrics reported that Brent declined to $108.72 per barrel on Tuesday, while WTI fell to $102.96, reversing some of the earlier gains.
However, Thursday’s renewed rally suggests that concerns over the security of energy infrastructure and oil shipments remain a major influence on global crude prices, despite ongoing diplomatic efforts.
Rising oil prices threaten petrol relief
The renewed increase in global crude oil prices could threaten efforts by the Federal Government to provide relief to Nigerian motorists, as persistent volatility in international energy markets continues to put pressure on domestic petrol prices.
- On October 8, the Federal Government announced a 30-day discount arrangement on petrol sold by the Nigerian National Petroleum Company Limited (NNPC Limited), with priority given to public transport operators nationwide.
- The intervention was designed to cushion the impact of rising fuel costs on households and businesses, particularly as higher petrol prices continue to affect transportation expenses.
- Checks by Nairametrics showed that most filling stations in Lagos were selling petrol between N1,380 and N1,400 per litre, reflecting sustained pressure on domestic fuel costs.
Nairametrics also reported that Nigeria’s energy inflation rate more than doubled to 10.85% year-on-year in September 2026, compared with 4.69% in August, according to figures from the National Bureau of Statistics.
With crude prices returning above $111 per barrel, continued volatility could complicate efforts to stabilise domestic petrol prices in the country.