Connect with us

Business & Economy

Oil Prices Rise Above $100 As Iran Tightens Grip On Strait Of Hormuz

Published

on

Crude oil
Share

 

Oil prices rose above $100 per barrel on Thursday after Iran tightened restrictions on vessels passing through the Strait of Hormuz amid its ongoing war with the United States.

Brent crude, the international benchmark, stood at $101.28 per barrel in early Asian trading, after rising above $100 on Wednesday for the first time since July.

Iran’s Revolutionary Guards said they had attacked several vessels attempting to pass through the strategic waterway, including two US vessels, eight oil tankers and 10 other vessels described as “non-compliant.”

The Strait of Hormuz is one of the world’s most important oil shipping routes, normally carrying about one-fifth of global oil supplies.

The British maritime security agency UKMTO also reported that several merchant vessels in the Northern Arabian Gulf and Gulf of Oman had come under fire amid continuing military activities in the region.

Iran has now expanded its restricted area beyond the Strait of Hormuz, declaring parts of the Gulf of Oman and Arabian Sea a “prohibited zone.” Iranian authorities warned that vessels entering the area without coordination could face sanctions.

US President Donald Trump, however, said oil prices would eventually fall as the war ends. He claimed that the United States was winning the conflict and had control of the Strait of Hormuz.

Trump also suggested that the war could end after the US mid-term elections in November, saying Iran could no longer continue fighting.

However, reports indicate that some US officials privately believe the conflict could continue for much longer.

The Iranian Revolutionary Guards also claimed responsibility for an attack on a US military base in Jordan, describing it as retaliation for US forces destroying five Iranian oil tankers.

Jordan said its military intercepted 18 missiles fired toward the country.

Iran condemned the destruction of its oil tankers, describing the action as a threat to regional and international peace and security. Tehran said its attacks on US military facilities were carried out in self-defence.

The escalating conflict has increased concerns about global energy supplies, particularly if the disruption of shipping through the Strait of Hormuz continues.

Meanwhile, the International Atomic Energy Agency’s Board of Governors voted to refer Iran to the UN Security Council over its nuclear activities. The resolution reportedly passed by 23 votes to three, with eight countries abstaining.

Iran rejected the resolution, accusing the United States of pressuring the nuclear watchdog and insisting that the decision would produce no results.

Israeli Prime Minister Benjamin Netanyahu also maintained that Iran was close to collapse, saying the main objective was to bring down what he described as Iran’s “terror regime.”

 

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business & Economy

Tinubu To Present 2027 Budget Before Year-End As FEC Approves Five-Year Development Plan

Published

on

President Bola Ahmed Tinubu
Share

 

President Bola Tinubu is expected to present the 2027 Appropriation Bill to the National Assembly before the end of 2026, as the Federal Executive Council (FEC) approved the National Development Plan 2026–2030 and new policy measures aimed at strengthening food security and tackling child stunting.

The Minister of State for Budget and Economic Planning, Doris Uzoka-Anite, disclosed this on Wednesday while briefing State House correspondents on the outcomes of the FEC meeting chaired by President Tinubu at the Presidential Villa, Abuja.

Uzoka-Anite also announced the council’s approval of the Revised National Policy on Food and Nutrition 2026, which seeks to establish sustainable financing mechanisms and strengthen collaboration among ministries responsible for agriculture, livestock, health and education, as well as development partners.

The announcements followed the conclusion of the 32nd Nigerian Economic Summit, held in Abuja from October 26 to 28, which focused on key issues affecting the country’s economic development.

Meanwhile, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has clarified that the $21.7 billion borrowing proposal transmitted by President Tinubu to the National Assembly is intended to finance investments in productive assets and infrastructure rather than recurrent expenditure.

Oyedele explained that the proposal represents a multi-year investment programme spanning approximately five years, rather than an immediate drawdown of the entire amount.

According to him, $10.6 billion is earmarked for critical transportation infrastructure, including the Sokoto–Badagry Highway, Lagos–Calabar Coastal Highway and Kano–Kaduna Metro Rail.

He further disclosed that more than $7.9 billion would be sourced from multilateral and bilateral development partners, including $5 billion from the World Bank, at an average interest rate of approximately 2.1 per cent.

The proposed financing package also includes $3.3 billion for state government projects and $1.45 billion for projects in the Federal Capital Territory.

The planned 2027 budget presentation and the approval of the five-year development plan underscore the Federal Government’s efforts to align fiscal planning, infrastructure investment and social development priorities with its broader economic agenda.

Continue Reading

Business & Economy

Tinubu Rules Out Fuel Subsidy Return, Says Nigeria Cannot Go Back to ‘Egypt’

Published

on

President Bola Ahmed Tinubu
Share

 

President Bola Tinubu has ruled out any return to petrol subsidy, insisting that the removal of the policy was necessary to prevent Nigeria’s economy from sliding into bankruptcy.

The President reiterated his position on Monday during a meeting with members of the City Boy Movement, a youth-driven political and advocacy group, where he defended the economic reforms introduced by his administration.

Tinubu said the government could no longer sustain the financial burden of subsidising petrol, arguing that the country lacked the resources required to continue funding the scheme.

“I came, and I removed the subsidy on my first day. Nigeria would have gone bankrupt; there was nothing left to pay for subsidies,” he said.

Using a biblical and Quranic analogy to underscore his position, the President declared that reversing the policy would amount to returning to an unsustainable economic system.

“When Moses (Musa) left Egypt, the Red Sea parted and gave way. You cannot ask Moses to go back to Egypt. With your energy and support, we will never go back to Egypt,” he stated.

The removal of petrol subsidy, announced during Tinubu’s inauguration on May 29, 2023, marked a major shift in Nigeria’s fiscal policy. The decision significantly increased petrol prices and contributed to mounting pressure on household incomes, transportation costs and businesses.

Petrol prices, which were below ₦200 per litre before the policy change, have since risen substantially, with prices reported at between ₦1,350 and ₦1,405 per litre across major filling stations.

The resulting increase in energy and transportation costs has continued to fuel public concerns over inflation, declining purchasing power and the overall cost of living.

However, the Federal Government has maintained that subsidy removal is critical to reducing fiscal pressure, improving public revenue and creating room for investment in infrastructure and other priority sectors.

Tinubu acknowledged the political contest surrounding the policy, noting that his opponents had promised to restore fuel subsidy. He nevertheless maintained that his administration would not reverse the reform.

Beyond defending the policy, the President urged members of the City Boy Movement to mobilise support for his administration by communicating its achievements and future plans to young Nigerians across campuses, markets and rural communities.

He also encouraged eligible young people to obtain their Permanent Voter Cards (PVCs) and participate in the electoral process.

The debate over fuel subsidy remains a central issue in Nigeria’s economic policy, with the government defending the reform on fiscal sustainability grounds while households and businesses continue to grapple with the effects of higher fuel prices.

 

Continue Reading

Business & Economy

FG Rules Out Electricity Tariff Hike, Targets 24-Hour Power Supply

Published

on

Power Station and Meters
Share

 

The Federal Government has ruled out any plan to increase electricity tariffs, saying its priority is to improve power supply and ensure reliable electricity across the country.

The Minister of Power, Joseph Tegbe, gave the assurance in Ibadan, Oyo State, on Thursday, amid concerns and speculation about a possible increase in electricity tariffs.

Tegbe spoke during the groundbreaking ceremony for five interconnected mini-grid projects with a combined generation capacity of 17.7 megawatts and a 17.74-megawatt-hour Battery Energy Storage System (BESS).

“I want to say this clearly and without ambiguity: there is no plan to increase electricity tariffs. What we are planning is a power sector that works around the clock. Our commitment is 24/7 power,” the minister said.

He urged Nigerians to disregard reports suggesting an impending tariff hike, stressing that the government was focused on improving electricity generation, transmission and distribution.

The five mini-grid projects are located in Bola, Jiboye, Molade-Adelubi, Ogo Oluwa and Sooko-Elega. They are expected to provide electricity to communities across Akinyele, Ido, Ibadan North, Egbeda and Lagelu Local Government Areas of Oyo State.

According to the minister, the projects are designed to expand electricity access, reduce dependence on petrol and diesel-powered generators, and create a more favourable environment for businesses, investment and job creation.

Tegbe said the Federal Government was also implementing a broader energy strategy aimed at improving electricity supply through designated energy corridors, including the Lagos-Ogun, Abuja-Kaduna-Kano and Benin-Enugu-Port Harcourt corridors.

He added that efforts were underway to strengthen the national grid and upgrade generation and transmission infrastructure across the country’s eastern, western and central corridors.

The minister described the mini-grid initiative as part of President Bola Tinubu’s Renewed Hope Agenda, noting that similar electricity interventions had been implemented in communities across several states with support from the Rural Electrification Agency (REA).

He commended Tinubu for his leadership and acknowledged the contributions of the REA, project developer Paras Energy and Natural Resources Development Limited, the World Bank and the Ibadan Electricity Distribution Company.

Tegbe also recognised the Oyo State Government, traditional rulers and other stakeholders for their roles in facilitating the projects.

The initiative is expected to improve electricity reliability in the beneficiary communities, support local economic activities and reduce energy costs for households and businesses.

 

Continue Reading