Oil Nears $105 as Trump Weighs Fresh Iran Strikes and Storm Threatens Gulf Output

Brent crude climbed back to near $105 per barrel on Thursday as tensions between Tehran and Washington deepened over a report that the Trump administration may be considering renewed strikes on Iran. West Texas Intermediate traded close to $92 a barrel.

The rally followed reporting by The Atlantic that President Trump may be weighing strikes on Iran before the midterm elections. The outlet said the Pentagon is reviewing options, though no final decision has been made. The threat comes on top of fresh attacks on vessels near the Strait of Hormuz, a chokepoint that handles a large share of global seaborne oil.

Storm Adds Pressure on Gulf Supply

A tropical storm is also closing in on the Gulf Coast and threatens to make landfall as a hurricane by Friday. Chevron said it is evacuating nonessential personnel from its offshore platforms in the region.

Those supply worries outweighed news that the International Energy Agency is accelerating the release of stockpiles of oil and distillates. "These factors outweighed the news that the International Energy Agency was accelerating the release of stockpiles of oil and distillates," said David Morrison, senior market analyst at Trade Nation, on Thursday.

Fed Tightening Bets Firm Up

Higher energy costs are feeding expectations that the Federal Reserve will hold to its tightening stance to curb inflation. The market has fully priced in a 25 basis point Fed rate increase in December. Bond yields have climbed worldwide, with the 10-year yield rising to 5.32%.

Volatile crude costs, combined with maxed-out refining capacity, have pushed refined fuel prices sharply higher. Gasoline averaged $4.36 per gallon on Thursday, according to AAA data. Diesel stood at $6.28 per gallon, down $0.02 from Wednesday.

The administration has been searching for ways to ease high energy costs ahead of November's midterm elections. On Tuesday, President Trump, responding to a reporter, said he is considering suspending the federal gas tax.

What It Means for Nigeria

Nigeria sells crude in dollar terms, so Brent near $105 supports government revenue and the foreign exchange that comes with it. But the same price feeds straight into the cost of imported refined products, since the country still relies heavily on imports for petrol and diesel. With the naira already fragile and pump prices sensitive, a sustained run above $100 keeps landing costs high and leaves little room for relief at the filling station. Diesel at $6.28 per gallon in the US also signals how tight global refining remains, a dynamic that feeds into Nigerian industrial and transport costs.