Nigerian businesses are bracing for another round of cost pressures after renewed tensions between the United States and Iran rattled global oil markets and raised fears of fresh disruptions to the Strait of Hormuz, through which nearly one-fifth of the world’s crude oil and gas flows.
President Donald Trump said the United States was “taking over” the Strait and would be compensated for securing the strategic shipping route, deepening market anxiety over the risk of a wider confrontation in the Gulf.
He accused Iran of repeatedly reversing agreed deals and warned of a strong American military response.
The development has already sparked concern among import-dependent economies, including Nigeria, where businesses are still grappling with elevated energy costs, foreign exchange constraints and fragile consumer demand.
Experts said any sustained spike in crude prices could translate into higher landing costs for diesel, aviation fuel, petrol and industrial raw materials, with ripple effects across manufacturing, logistics, transport and retail.
Iran’s Revolutionary Guards said they had struck U.S. military facilities in Bahrain and Kuwait in retaliation, and also claimed to have destroyed radar systems in Oman and targeted fuel depots at Prince Hassan Air Base in Jordan.
Fresh explosions were reported in Bandar Abbas and Qeshm Island near the Strait of Hormuz on Monday, while Bahrain said it intercepted several Iranian missiles and drones launched during overnight attacks.
The immediate threat is not just higher oil prices, but also the possibility of supply-chain disruption if shipping through the narrow waterway slows or becomes temporarily restricted. That could lift global freight costs, delay cargo movement and increase insurance premiums for vessels heading into and out of the region.
For Nigerian firms, the implications are broad. Manufacturers that depend on imported inputs may face higher production costs, while transport operators and airlines could see fuel expenses rise further. Traders importing consumer goods may also be forced to pass on part of the added cost to customers, worsening price pressures in an economy already battling stubborn inflation.
Furthermore, the shock could complicate policy management for the Central Bank of Nigeria (CBN) and the federal government. A jump in oil prices may support foreign exchange inflows over time, but the short-term effect for households and firms is usually negative because transport, logistics and energy costs rise before any gain from stronger export earnings is felt.
Business leaders are watching the crisis closely for signs of escalation or de-escalation. A quick diplomatic breakthrough could calm markets and ease pressure on fuel prices. But if the standoff deepens, Nigerian businesses may be forced into defensive moves such as cutting costs, delaying expansion plans and preserving cash flow.
The renewed flare-up adds another layer of uncertainty to the global outlook and underscores Nigeria’s exposure to geopolitical shocks far beyond its borders. For the private sector, the risk is clear: another imported cost shock may be on the way.
(The Sun)