Oil prices skyrocketed to $113 and $103 per barrel on Tuesday following an Iranian drone strike that set Kuwait's oil tanker ablaze. The Al-Salmi, a Kuwait-flagged vessel, was attacked while en route to Dubai, causing a fire and hull damage, but no reported injuries.
US President Donald Trump has threatened to destroy Iran's energy plants and oil wells if the country fails to open the Strait of Hormuz. This escalation comes on the heels of the Iran-US-Israel war, which began on February 28, 2026.
The Al-Salmi tanker carries 2 million barrels of oil worth over $200 million at current prices, according to its owner, Kuwait Petroleum Corp. The attack may have significant implications for global oil markets and, by extension, domestic petrol prices in Nigeria.
As oil prices continue to rise, Nigerian consumers may face increased costs at the pump. In recent months, diesel and fuel prices have surged by over 50 percent, with retail pumps in Abuja ranging from N1,295 to N1,370 per liter.
The Trump administration's aggressive stance on Iran's energy infrastructure raises concerns about the global oil supply chain. If the US follows through on its threat to destroy Iran's energy plants, it could lead to a significant disruption in oil production, exacerbating the already dire fuel situation in Nigeria.
