Hope fades as oil surges to $107.5 on Iran-US renewed tensions

CRUDE oil prices extended their rally on Thursday as prospects for easing tensions in the Iran conflict dimmed, following Tehran’s firm denial of any ongoing negotiations with the United States, Al Jazeera reported.

Brent crude, the global benchmark, surged 5.27 percent to trade at $107.5 per barrel after Iranian officials rejected reports suggesting direct engagement with the administration of US President Donald Trump.

The latest gains reverse some of Wednesday’s losses, when prices briefly softened amid speculation that Washington had proposed a 15-point framework aimed at ending the conflict.

Investor sentiment remained cautious across financial markets, with major Asian indices, including Japan’s Nikkei 225, South Korea’s KOSPI, and Hong Kong’s Hang Seng, opening in negative territory.

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Iran’s Foreign Minister, Abbas Araghchi, stated in a state media interview that the country is neither in direct contact with Washington nor willing to enter negotiations at this time.

Meanwhile, White House Press Secretary Karoline Leavitt warned that Iran could face intensified military consequences if it refuses to concede.

Tensions have severely disrupted global energy flows, particularly through the Strait of Hormuz, a critical passage responsible for roughly 20 percent of the world’s oil shipments. Iran’s actions in the region, including strikes on energy infrastructure, have contributed to a sharp escalation in prices.

Since the onset of US and Israeli strikes on Iran on February 28, oil prices have jumped by more than 40 percent, forcing several countries to adopt fuel rationing and energy-saving policies.

Analysts expect upward pressure on prices to persist until safe passage through the strait is restored, despite coordinated efforts by nations to release emergency reserves through the International Energy Agency.

Although Iranian authorities maintain that the waterway remains accessible to neutral vessels, shipping activity has plummeted. Data from maritime intelligence firm Windward shows only four ships passed through the strait on Tuesday, a steep decline from the pre-conflict daily average of about 120 vessels.

Nigerians worse-off

The situation has kept petrol price above N1,200 per litre in Nigeria, with some filling stations in the South-East and South-South selling as high as N1400 per litre.

Consequently, the cost of transport has risen, with additional 10 percent to 30 percent across the board. This has forced some firms to ask workers to report from home or work twice or three times in the office.

An Anambra State-based entrepreneur, Mr Ifeanyi Okekele, who runs agro-based firms, told Economy Post that he has asked his staff members to work from home to reduce their transport spend.

“My staff members are working from home,” he said. “Only senior members of staff now come to the office twice every week,” he said, stressing that there is no need asking workers to come to work every day at this time.

“When we did our calculations, we found that our staff now spend 20 percent to 30 percent more to be in the office. Currently, it isn’t time to raise salaries. So, we thought it would be wise to adopt this practice until we begin to see de-escalation of the conflict between the United States, Israel and Iran, or at least all parties agree on a ceasefire.”

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In Lagos, some organisations have reduced the number of days they expect their workers to be in the office in a week. A staff member of an Ikeja-based manufacturing company told Economy Post that he goes to the office only three times a week.

“We now go to the office three times a week. Work is now rotational even for factory workers. The company feels that the cost of transport is having a negative impact on workers’ income, so it came up with this policy to help us.”