Following the United States of America strike, which hit Iran’s three nuclear sites—Natanz, Isfahan, and Fordo, on Saturday, the global oil prices are expected to spike further in the coming days.
US President Donald Trump on Truth Social described the attack as a ‘spectacular military success.’
He added, “Key nuclear enrichment facilities have been completely and totally obliterated.”
However, they downplayed the impact of the attack, claiming that it was contained with little damage. Meanwhile, Minister Seyed Abbas Araghchi faulted the strike and described it as “outrageous” and reserved “all options” to defend Iran’s sovereignty.
The development became the US’s official entrance into the war between Israel and Iran in the last weeks, further escalating the tension in the Middle East.
This has prompted fears of soaring oil prices, market volatility, and a deepening U.S. role in the region’s conflict.
Investors predict a “knee-jerk” reaction, with oil prices expected to spike due to fears of disrupted Middle East supply. As of filling the report, crude oil prices such as Brent Crude and West Texas Intermediate stand at $77.07 and $73.83 per barrel. In the last weeks, Brent crude, already up 20% over the past month to $79.04, could climb towards $130 per barrel in a worst-case scenario, according to JPMorgan.
On his part. Mark Spindel of Potomac River Capital said, “Oil will open higher.”
He noted the uncertainty over Iran’s response and damage assessments.
The US’s involvement in the Israel and Iran war has generated both kudos and knocks from the country’s lawmakers.
For instance, Republican Senator Mitch McConnell praised Trump’s “decisive action,” arguing that the move would bring to a standstill Tehran’s aggression.
On the flip side, Democrat Congresswoman Alexandria Ocasio-Cortez condemned the strikes as a “grave violation” of constitutional war powers, calling them “grounds for impeachment.”
In Nigeria, the development poses mixed realities to the country. While oil revenue is on the rise, domestic petrol prices are on the upward trend following the Israel-Iran war.
