Oil Price Rises to $72 per Barrel as Tensions Escalate in Middle East

Global crude oil price hit $72 a barrel on Friday — the highest level since July 31, 2025, when it reached $71.7 per barrel before a persistent downward trend began.

Brent, the global crude price benchmark, stood at $72.87 per barrel at market close on Friday, while the US West Texas Intermediate (WTI) finished at $67.02 a barrel.

Although the Brent price indicated a huge leap in a seven-month trend, it marked a slight decrease from a high of $73.5 before market close on Friday.

The price surge followed indirect talks held between the US and Iran in Geneva on Thursday after United States President Donald Trump ordered a military buildup in the region over an age-long nuclear dispute.

Oil prices gained more than a dollar a barrel during the talks, indicating that discussions had stalled over the US insistence on zero enrichment of uranium by Iran.

Trump expressed disappointment on Friday about the US negotiations with Iran over its nuclear program, warning that “sometimes you have to use force.”

Tensions escalated on February 28, with the US and Israel jointly launching “pre-emptive” missile strikes on Iran.

Iran immediately responded with reprisal missile attacks on US military bases across the Middle East.

Explosions were reported in Abu Dhabi, Manama, Doha, and Kuwait, as well as in Riyadh, Saudi Arabia, amid rapidly escalating regional tensions.

In Bahrain, authorities confirmed that the headquarters of the US Navy’s fifth fleet in Juffair was targeted by a missile strike.

Analysts believe that the war could lead to material supply disruptions, posing “asymmetric upside risk for oil prices”.

There are also reports of speculations around Saudi Arabia raising its April crude price to Asia for the first time in five months due to higher demand from India to replace Russian supplies, potentially raising it by about $1 a barrel.

Sources told Reuters that the Organization of Petroleum Exporting Countries (OPEC) and its allies, will likely consider raising oil output by 137,000 barrels per day for April at its March 1 meeting after suspending production increases in the first quarter.

Meanwhile, the conflict presents an opportunity for improved earnings for major oil producers like Nigeria. The current oil price is above Nigeria’s 2026 budget benchmark of $64.85 per barrel.