UNITED States equities declined on Thursday while oil prices surged as tensions in the Middle East intensified, following Iran’s warning that it could retaliate if the United States launches a ground invasion.
After a relatively calm trading session on Wednesday, U.S. crude prices jumped sharply on Thursday, climbing more than 8 percent and briefly touching $82 per barrel. Brent Crude reached $84 per barrel at 11.35pm on Thursday, while WTI jumped 6.35 percent to $81.01 Nigerian time.
Since Sunday, the benchmark has gained about 20 percent, reaching its highest level since July 2024. The global oil benchmark also recorded a rise of about 4 percent.
According to data from GasBuddy, the national average gasoline price in the United States climbed to $3.25 per gallon, more than 30 cents higher than levels recorded on Sunday. In Ngeria, petrol sells between N930 per litre and N980 per litre.
Concerns that higher energy prices could reignite inflationary pressures have pushed government bond yields upward. By late afternoon, yields on the 10-year U.S. Treasury had risen above 4.1 percent, while the 30-year Treasury yield climbed past 4.75 percent. Mortgage costs have also reacted, with the average 30-year mortgage rate reaching 6.13 percent earlier in the day.
Iran warns against ground invasion
The conflict between the United States and Iran shows little sign of easing less than a week after it began. Speaking to NBC News on Thursday, Iranian Foreign Minister, Mr Abbas Araghchi, said Tehran is confident it could confront U.S. forces if Washington attempts a ground invasion.
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Meanwhile, Donald Trump announced on Tuesday that he had directed the U.S. International Development Finance Corporation to provide political risk insurance and financial guarantees aimed at safeguarding maritime trade moving through the Gulf, particularly shipments of energy.
Insurance brokers say discussions are ongoing with the administration in an attempt to restore shipping activity near Iran’s coastline. However, hundreds of vessels remain stranded as security concerns persist.
At the centre of the disruption is the Strait of Hormuz, a critical chokepoint near Iran’s southern coast through which roughly 20 percent of the world’s daily oil supply normally passes. Since the United States and Israel carried out strikes on Iran on Saturday, maritime traffic through the waterway has slowed dramatically, raising fears of a global supply disruption.
Araghchi said Iran currently has ‘no intention’ of shutting the strait but cautioned that “as the war continues, we will consider every scenario.” He also stated that international oil tankers were not being targeted.
The ripple effects are already spreading beyond oil markets. Qatar, the world’s second-largest exporter of liquefied natural gas, has halted production due to the effective closure of the strait and what it described as military attacks on facilities operated by QatarEnergy.
As a result, U.S. natural gas prices have climbed roughly 4 percent since Sunday, while prices in Europe have surged by more than 50 percent.
