Nigerian crude oil grades surged sharply alongside global benchmarks as stalled peace talks over the Iran conflict and the near shutdown of the Strait of Hormuz deepened supply fears across international markets.
Brent crude climbed as much as 2.5 percent to $108 per barrel, while West Texas Intermediate advanced toward $97.
Nigeria’s premium light sweet crude grades Bonny Light, Qua Iboe and Brass River jumped above $113 per barrel, with some spot cargoes reportedly trading as high as $130 per barrel.
The rally has been driven by strong demand from Asian and European buyers shifting toward West African crude amid supply disruptions in the Middle East. Nigerian grades are also benefiting from demand for low-sulphur “sweet” crude, which is easier for refineries to process into higher-value products such as diesel and aviation fuel.
Oil prices, however, trimmed some gains after reports emerged that Tehran had presented Washington with a fresh proposal aimed at reopening the Strait of Hormuz.
Iran maintained it would not enter negotiations under threats, while US President Donald Trump reportedly cancelled a planned weekend visit by top envoys to Pakistan, which has been mediating talks.
Strait of Hormuz Disruptions Deepen Supply Fears
Daily vessel movement through the strategic waterway has reportedly dropped close to zero following blockades involving both US and Iranian forces, despite a ceasefire that has largely held since early April.
The shutdown has disrupted shipments of crude oil, liquefied natural gas, fertilizer and fuel products, and intensifying fears of a new global inflation wave.
Iran Offers New Deal
Iran has reportedly proposed a deal through Pakistani mediators to reopen the strait and end hostilities, while postponing nuclear negotiations to a later stage.
President Trump is expected to meet with senior foreign policy and security officials on Monday to review the latest developments.
According to reports, Trump said Iran “offered a lot, but not enough,” after directing envoys Jared Kushner and Steve Witkoff to suspend their trip.
Iranian President Masoud Pezeshkian also insisted the country would not accept “imposed negotiations under threats or blockade.”
Now in its ninth week, the conflict has pushed up global energy prices, triggered shortages of products such as cooking gas in India, and forced airlines to cut flight operations.
The International Energy Agency described the crisis as one of the biggest supply shocks in modern history.
Nigeria Faces Export Windfall but Domestic Pressure
While Nigeria stands to gain from stronger oil prices, the country faces mounting pressure to balance export earnings with local refining needs.
Crude production rose to about 1.84 million barrels per day in April 2026, up from the 1.3 to 1.5 million barrels per day range recorded earlier in the year.
Even with higher output, Nigeria is still managing supply targets tied to its OPEC quota and budget assumptions.
At the same time, the Dangote Refinery is estimated to require about 15 crude cargoes monthly to run at full capacity, while NNPC allocations reportedly reached only around 10 cargoes in March.
That shortfall has forced the refinery to source additional crude imports despite Nigeria’s stronger domestic production.
Analysts say the central challenge remains competition between Nigeria’s urgent need for dollar-denominated export revenue and the growing crude demand from local refiners.
Many upstream producers are said to prefer selling into lucrative international spot markets where Nigerian grades are fetching above $113 per barrel in hard currency.
