Brent Crude Surpasses $100 Amid US-Iran Military Conflict

Brent crude oil prices surpassed $100 per barrel on July 24, 2026, surging over 30% this month. The price spike followed military strikes by the United States against aircraft hangars and drone storage facilities in Iran, alongside attacks by Houthi militia on two Saudi oil tankers in the Red Sea. These developments raised immediate concerns regarding energy supply disruptions in the Bab el-Mandeb and the Strait of Hormuz.

In response to the volatility, the International Energy Agency released 400 million barrels of emergency stocks to cushion the market, though refined fuel supplies remain tight. The economic ripple effects were felt globally; in Nigeria, the Dangote Petroleum Refinery increased ex-depot petrol prices by 13.02%, driving pump prices in Abuja to approximately ₦1,350 per litre.

Indian markets faced significant pressure, with the Sensex and Nifty falling for five consecutive sessions. Analysts warned that sustained prices above $100 would act as a stealth tax on India, squeezing real incomes and forcing the Reserve Bank of India to tighten monetary policy to stabilize the rupee. While some analysts remain bullish on a market rally pending a US trade deal, they maintain that oil must return to the $75-80 range to mitigate the current economic shock.