Energy
Iran’s Threat Pushes Brent Over $90
Brent crude closed above $90 per barrel on Monday as Iran threatened to launch a military offensive in the Strait of Hormuz if diplomatic efforts to end its war with the United States fail.
The benchmark Brent crude was quoted at $90.53 per barrel as of Monday evening, gaining $2.01, or 2.27 per cent, according to oilprice.com. US West Texas Intermediate crude also climbed to $84.25 per barrel, up $1.85, or 2.25 per cent.
According to Reuters, the rise followed renewed tensions around the strategic Strait of Hormuz after a senior Iranian official told the news agency that Tehran had shifted its policy from defensive to “fully offensive” because of a deadlock in efforts to secure a permanent end to the war.
The official said Iran was prepared to take military action in the Strait of Hormuz if diplomatic efforts failed. “Iranian entities must be prepared to escalate tensions in the Strait of Hormuz and wider region, as Iran will be ready to make decisions and take action on difficult decisions,” the official told Reuters.
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He added that Tehran would conduct a “timely and precise” military attack to break the United States naval blockade if diplomacy failed.
The development threatens to further disrupt tanker movements through Hormuz, a key global energy corridor, at a time when efforts to restore oil traffic through the waterway have stalled.
According to Reuters, progress towards peace talks and the resumption of oil tanker traffic through the Strait of Hormuz has ground to a halt, with neither side showing signs of moving towards an end to the conflict.
The latest escalation came on the day Iran and the United States were expected to reach a final agreement under a memorandum of understanding signed in June.
The June 17 memorandum provided a 60-day timeframe for Washington and Tehran to reach a broader agreement concerning Iran’s nuclear programme and US sanctions.
The interim agreement, which called for the “immediate and permanent termination of military operations on all fronts”, however, quickly collapsed over disagreements concerning control of the Strait of Hormuz.
The waterway, which is shared by Iran and Oman, is a major route for global energy supplies. It was reported that about a fifth of global oil and liquefied natural gas flowed through the strait before the war.
Tehran maintains that the June agreement gave it the right to manage the waterway, while Washington rejected that interpretation.
The dispute subsequently contributed to the resumption of hostilities, with Iran firing on vessels it said were attempting to sail through the strait using an unauthorised route.
US President Donald Trump subsequently declared on July 7 that the agreement was over.
The Iranian official told Reuters that Tehran had now given the United States only a short period to implement all the provisions of the agreement before further negotiations could take place.
“Within the short period of a few weeks set by Iran, all the agreement’s provisions must be implemented by the U.S. This is a precondition for further negotiations with the US,” the official said.
Mediators are expected to communicate Iran’s deadline to Washington and other regional countries. Iran is also separately negotiating with Oman over the management of the Strait of Hormuz, with Tehran saying the two countries are close to an agreement despite slow progress.
The situation was further complicated by Trump’s warning to Oman during a phone interview with Fox News on Monday. “If Oman gets in the way, we’ll bomb the shit out of them,” Trump said, according to Reuters.
Earlier, Trump said Iran should surrender, telling Fox News that Tehran “should put up the white flag of surrender”. The renewed threats have heightened concerns over the security of shipping through Hormuz and helped push crude prices higher on Monday.
The price movement also comes after oil had traded below the $80 mark earlier in the month amid expectations that tensions around the waterway could ease. Monday’s Brent price of $90.53 therefore represented a fresh rise above the $90 threshold, while WTI stood at $84.25 per barrel.
With the completion of a nationwide gas-grid mapping exercise expected in October, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has revealed that the digital licensing round for gas distribution areas will happen before the end of 2026.
The Authority Chief Executive, Engr. Rabiu Umar, made the disclosure on Wednesday at the Gas Investment Forum 2026, themed “Positioning Nigeria as Africa’s Global Gas Powerhouse.”
Umar said applicants would bid for gas distribution licences in designated areas across the country under a process similar to the award of Oil Mining Licences (OMLs) in the upstream sector.
“Under the licensing round, applicants will bid for gas distribution licences in the gridded areas available across the country, in the same way licensees apply for Oil Mining Licences (OMLs) in the upstream sector,” he said.
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He said the initiative was part of efforts to move Nigeria from a fragmented gas-access system to an open-access regime that would allow more participants to use existing infrastructure.
“Without infrastructure, reserves are potential. They will continue to have potential,” Umar said.
“With infrastructure, gas becomes productivity and national resilience, especially in the light of the global headwinds that we see.”
According to him, the country needs infrastructure capable of moving gas from wellheads to processing plants, power stations, industrial clusters, transport corridors, homes and export terminals.
Umar said the Federal Government’s Decade of Gas Initiative was serving as an “engine of execution”, while NMDPRA was accelerating licences and approvals for gas processing plants, pipelines, storage facilities, compressed natural gas (CNG) and liquefied natural gas (LNG) projects.
As part of efforts to position Ghana as a strategic hub for regional energy trade, MT Asharami Ghana, a 40,000-cubic-metre Liquefied Petroleum Gas (LPG) carrier has delivered 5,000 metric tonnes of LPG in its maiden voyage to Ghana, thus boosting efforts to strengthen energy security, and LPG supply reliability.
Purpose-built to serve Ghana and neighbouring markets, MT Asharami Ghana forms part of Sahara Group’s integrated LPG infrastructure strategy across Africa.
Welcoming the vessel, Hon. Dr. John Abdulai Jinapor, Minister for Energy and Green Transition, described the arrival of MT Asharami Ghana as a major boost to Ghana’s clean energy ambitions.
“The arrival of MT Asharami Ghana represents a significant step forward in our quest to expand access to cleaner energy solutions for Ghanaians. As we work towards increasing LPG adoption across the country, investments like this are essential to strengthening supply reliability and achieving our clean cooking objectives.”
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The Minister said Ghana’s ambition of increasing LPG utilisation and improving energy security can only be achieved through strong partnerships between government and responsible private-sector investors.
“We commend Sahara Group for standing shoulder-to-shoulder with Ghana over the years in supporting our aspirations for energy security, economic growth and sustainable development. The success of our energy transition journey depends on credible and committed partners.”
According to Wale Ajibade, Executive Director, Sahara Group, the vessel represents far more than an investment in maritime infrastructure.
Ajibade noted that Ghana’s target of increasing LPG adoption in 50 per cent of households by 2030, up from about 30 per cent today, makes investments in supply infrastructure increasingly important.
“At Sahara, we see MT Asharami Ghana as a symbol of confidence in Ghana’s future and the country’s growing role in regional energy trade. It reflects our unwavering belief in Ghana’s immense potential and our determination to work alongside stakeholders to deliver sustainable energy solutions that improve lives, create opportunities and drive inclusive growth.”
He added that the vessel is part of a broader, integrated infrastructure strategy combining shipping, storage, and downstream distribution to strengthen Ghana’s LPG value chain.
Yaa Serwaa Alifo, Managing Director, Asharami Ghana, described the vessel’s arrival as the culmination of a vision and a bold statement of the company’s commitment to Ghana’s energy future.
“What we are celebrating here is the culmination of a vision and a bold statement of our commitment to Ghana’s energy future. Asharami Ghana will help ensure that homes, businesses and families across Ghana have reliable access to cleaner cooking fuel,” she said.
Alifo acknowledged the support of the Government of Ghana, the Ministry of Energy and Green Transition, the National Petroleum Authority, Sahara Group’s leadership, and all stakeholders whose collaboration helped bring the project to fruition.
As demand for LPG continues to grow across the sub-region, investments in marine infrastructure such as MT Asharami Ghana will become increasingly important in ensuring security of supply, operational efficiency, and sustainable economic growth.
The $800 million Final Investment Decision (FID) on the Ima Gas Project (IGP) has been described as a landmark development that affirms the growing viability of Nigeria’s upstream gas sector.
The Nigerian National Petroleum Company Limited (NNPC Ltd) flaunted the project, located offshore in OMLs 112 and 117 and developed by AMNI International in partnership with TotalEnergies, noting that it will produce about 300 million standard cubic feet of gas per day at peak.
It added that the output will supply critical feedgas to the Nigeria LNG Limited in support of its Train 7 expansion, which will increase capacity at the Bonny Island plant from 22 million tons per annum to 30 Mtpa.
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This was detailed in a statement in which the state oil major stressed that the FID was enabled by the presidential directives of 2024, which provided fiscal incentives for non-associated gas, streamlined contracting and lowered development costs.
Group Chief Executive Officer, NNPC Ltd, Bayo Ojulari described it as “a decisive vote of confidence in Nigeria’s gas sector and in the bold reforms” that have created competitive terms and a predictable investment environment.
The NNPC Ltd also commended the collaboration between AMNI, TotalEnergies and the Nigerian financial sector, saying the model of indigenous operator, international partner and domestic capital is a template for future developments.
“NNPC reaffirms its commitment to work with government, regulators and industry partners to sustain investment momentum and deploy Nigeria’s gas resources for industrialisation, job creation and long-term prosperity,” the statement added.
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