The oil price rises to $108 following escalating tensions in the Middle East, as Iran rejected a United States proposal to end the ongoing conflict, describing it as one-sided.
The surge reflects renewed uncertainty in global energy markets, with crude prices climbing sharply after earlier declines tied to expectations of diplomatic progress.
Global oil markets have remained volatile since the outbreak of the 2026 Iran conflict, which has disrupted supply routes and heightened geopolitical risks.
The Strait of Hormuz, a key global shipping route, has experienced reduced tanker traffic, contributing to supply concerns and price increases.
The oil price rises to $108 development follows a brief drop earlier in the week when talks between the United States and Iran were anticipated. However, uncertainty returned after Iranian officials dismissed the proposed peace framework.
Analysts note that geopolitical instability in oil-producing regions often leads to rapid price movements, especially when supply chains are threatened or disrupted.
Crude oil prices rose by 5.98 percent to $108.3 per barrel, reversing earlier losses recorded during midweek trading.
The price had previously declined from $103 to $98 per barrel after US President Donald Trump disclosed that discussions were underway to resolve the conflict.
Iranian officials, however, rejected the proposed 15-point peace plan, describing it as “one sided, unfair and skewed to favour US and Israel.”
A senior Iranian official told Reuters that while diplomacy had not been ruled out, there was currently “lack… of a realistic plan for peace talks.”
The oil price rises to $108 trend aligns with broader global reactions, as markets respond to prolonged uncertainty and potential disruptions in supply chains.
Recent data shows Brent crude climbing above $108 per barrel amid fears of continued instability.
The oil price rises to $108 has direct implications for energy-importing countries, including Nigeria, where domestic fuel prices remain elevated.
Data shows that petrol prices in Nigeria are currently N1,261 per litre in Abuja at NNPC Limited stations, while major marketers sell at N1,371 per litre.
Before the conflict began in late February, petrol sold at N860 per litre at NNPC outlets and N880 per litre among major marketers, highlighting the scale of recent increases.
For businesses and urban consumers, rising energy costs can increase transportation expenses, affect supply chains, and contribute to inflationary pressures.
Small businesses, particularly those dependent on logistics and power generation, may face higher operating costs.
Globally, sustained high oil prices could influence inflation trends and economic stability, especially if supply disruptions persist.
