IRAN-US CONFLICT ESCALATES -STRAIT OF HORMUZ SHUT AGAIN, OIL PRICES SPIKE

IRAN-US CONFLICT ESCALATES -STRAIT OF HORMUZ SHUT AGAIN, OIL PRICES SPIKE

As the Middle East crisis enters its 7th day today after Iran launched fresh attacks on US facilities in the Gulf, and the US retaliating with another airstrike last night on Iranian military targets, The escalation has forced the Strait of Hormuz to shut again, sending global oil prices up and raising concerns for Nigeria’s economy.

US Central Command has that said fighter jets, drones, and warships hit dozens of Iranian military targets which includes :coastal surveillance sites, air defense, and logistics infrastructure near Qeshm Island and Bandar Abbas.

Iran responded to the attack in the early hour of the day by firing missiles and drones at US facilities in Bahrain and Kuwait. Witnesses in Doha also reported explosions, and Qatar’s Ministry has reported that a child was injured by a sharpnel .

The Iranian state media has also reported that 5 bridges were hit in Bandar Khamir, plus a train station and Iranshahr Airport. IRNA said 7 people were killed in the bridge attack.

With the repeated hits, the world’s most important oil and gas shipping route. Traffic has been halted again. 

Tehran resumed its blockade on Wednesday and Washington blockaded Iranian ports at the same time.

Iran has also disclosed that it wants all ships to use a channel close to its shores and it plans to charge a passage fee after a 60-day negotiation period. In the meantime,the US is telling ships to use an alternative route along the Omani coast.

Nigeria as an oil-dependent economy would be affected as the Hormuz shuts down as there will be an increase in oil price as well as an increase in shipping into the country.

CBN Governor, Olayemi Cardoso, said on Thursday, July 16th , that Nigeria has experienced 11 months of continuous disinflation but warned that external shocks like this complicate the outlook of it.

Finance Minister, Taiwo Oyedele also said that the government will start tracking poverty data to prove it's reforms are working but a war-driven fuel spike would make that harder.

As the case may be, the federal government may have to adjust his 2026/2026 budge projection if oil continues to stay above $100.