Oil prices extended a strong rally Tuesday as hopes for a reopening of the Strait of Hormuz fade, fanning fresh inflation fears and ramping up bets on at least one US interest rate hike this year.

Crude has surged around 10 per cent over the past week, with the United States and Iran appearing no closer to a deal on the crucial waterway despite upbeat comments from the White House earlier in the month.

In the latest blow, Donald Trump said Monday he would seek conflict compensation from Iran as part of any peace negotiations, citing attacks and killings stretching back decades allegedly backed or perpetrated by Tehran.

The US president’s announcement was a direct response to Tehran’s demand for US war reparations as a precondition to any resolution of the crisis.

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Trump’s remarks came a day after he said he was “low-keying” his approach to the conflict, suggesting he was prepared to let economic pressure mount in place of further military strikes.

However, the latest back and forth risks putting a quick agreement further out of reach, and on Monday both main crude contracts jumped around five per cent. They rose more than one per cent on Tuesday.

“In the absence of any positive headlines on negotiations to reopen the strait, pressure on oil prices has been upward,” wrote Jason Wong at BNZ.

And Stephen Innes, global strategist at Quintex Intel, said: “In effect, both sides are trying to weaponise the oil barrel without firing another shot. Washington is trying to choke Iran’s ability to get its crude out, while Tehran is squeezing the artery through which everybody else’s crude gets through.

“It is quite the game of chicken.”

The prospect of oil prices remaining elevated for the time being has revived concerns over inflation and boosted the chances of interest rate increases.

While a surprise loss of more than 20,000 jobs in the US economy last month eased fears of a Federal Reserve hike, a spike in price pressures could force the bank’s hand.

Cleveland Fed boss Beth Hammack told Yahoo Finance on Monday: “I would say in general, one 25-basis-point move probably doesn’t do a whole lot for the economy.

“So it’s probably some number of (movements). But I don’t want to prejudge what that number is going to be.”

The US-Iran deadlock and rising crude costs come as traders await the release of consumer price data on Wednesday, which could play a key role in guiding the Fed on its next move.

Asian equities were mixed following a tepid day on Wall Street.

Hong Kong, Shanghai, Wellington, Mumbai, Bangkok and Jakarta all retreated but there were gains in Seoul, Sydney, Singapore, Taipei and Manila. London and Frankfurt opened higher while Paris was flat.

Tokyo was closed for a holiday.

Key figures around 0715 GMT include: West Texas Intermediate: UP 1.5 per cent at $83.37 per barrel, Brent North Sea Crude: UP 1.3 per cent at $88.85 per barrel, Hong Kong – Hang Seng Index: DOWN 1.0 per cent at 25,679.98, Shanghai – Composite: DOWN 0.8 per cent at 3,934.09 (close).

London – FTSE 100: UP 0.1 per cent at 10,872.52, Tokyo – Nikkei 225: Closed for holiday, Euro/dollar: DOWN at $1.1535 from $1.1543 on Monday, Pound/dollar: DOWN at $1.3505 from $1.3508, Dollar/yen: DOWN at 159.22 yen from 159.31 yen, Euro/pound: DOWN at 85.42 pence from 85.45 pence, New York – DOW: DOWN 0.1 percent at 53,975.98 (close).

Courtesy – AFP

The steadfast protection of oil pipelines has been identified as a major element to guarantee Nigeria’s energy future.

The Pipeline Infrastructure Nigeria Limited (PINL) made the assertion through its General Manager, Community and Stakeholders Relations, Dr Akpos Mezeh, at the monthly stakeholders’ engagement forum of the company with host communities over the weekend in Yenagoa.

He pointed out that vigilance should be maintained to ensure economic saboteurs are kept at bay.

According to him, the Nigerian National Petroleum Company Limited’s (NNPC Ltd’s) recent strategic agreements, including a 20-year Gas Sale and Aggregation Agreement with Ajaokuta Steel Company Limited; a 15-year Gas Supply Agreement with UTM FLNG, and network agreements expected to inject up to 800 million standard cubic feet of gas per day into Nigeria’s domestic gas transportation network can only deliver the required benefits if supporting infrastructure is protected.

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Mezeh said PINL has succeeded in ensuring protection of pipelines, adding, however, that lack of cooperation from host communities on surveillance could derail Nigeria’s energy future.

‘’However, these investments can only deliver their intended benefits when the supporting infrastructure remains protected from vandalism, crude oil theft and sabotage.

This is why the work we are doing together through community partnership has become even more significant.

‘’While we celebrate these achievements, we must remain vigilant. During the past month, uninterrupted operations were largely maintained across the Trans-Niger Pipeline and the Eastern Gas Network corridor through effective collaboration with security agencies, contractors and host communities.

‘’However, incidents of sabotage, attempted vandalism, and equipment failures were recorded in some operational areas. We are pleased to report that prompt interventions led to the repair of affected facilities, while suspects linked to incidents were arrested and investigations remain ongoing. These incidents reinforce the need for stronger surveillance, timely intelligence sharing and sustained collaboration among all stakeholders. Every timely report and every act of vigilance protects lives, preserves our environment and safeguard Nigeria’s economy.

Mezeh, while commending traditional rulers, security agencies and community leaders for their cooperation, which has continued to strengthen PINL operations, assured stakeholders that the company would continue to strengthen its community-based surveillance, expand youth and women empowerment initiatives, sustain scholarship programmes and promote peaceful conflict resolution and environmental sustainability.

He pointed out that following the success of PINL’s maiden scholarship programme, the Board and Management have approved it as a yearly intervention for students of our host communities throughout the duration of PINL’s contract with the Federal Government.

He noted that the gesture reflects our enduring commitment to education, youth development and sustainable community growth.

Meanwhile, the Chairman of Bayelsa State Traditional Rulers Council and Ibenanaowei of Ekpetiama Kingdom in Yenagoa Local Government Area of Bayelsa State, HRM King Bubaraye Dakolo, has implored the Federal Government to increase the funding for PINL to enable the company to strengthen its operation in protecting oil pipelines in the Niger Delta region.

The Monarch argued that increased funding for pipeline protection would ensure more resource allocation to host communities to address socio-economic factors.

In the bid to resolve the issues surrounding crude oil supply shortages to domestic refineries, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), are poised to hold strategic conversations with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

According to the NMDPRA, enhanced crude supply to local refineries has become imperative because Nigeria now boasts of about 1.125 million barrels a day (bpd) of installed refining capacity led by Dangote’s 700,000-bpd refinery, which has helped the West African nation transform into a net exporter of refined products.

It added that the Nigerian government is positive about refining all of her crude domestically, with the target production of 3 million barrels a day in the coming years in mind.

Nigeria still faces major structural constraints, including crude supply shortages, underperforming state-owned refineries and concerns over excessive dependence on Dangote.

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The director general (DG) of the Authority Rabiu Umar, dropped the hint in Lagos at the 49th annual conference of the Society of Petroleum Engineers (SPE) Nigeria Council.

He explained that the federal government wants to end the pattern which sees more of locally produced crude exported, while refined products are imported.

“Every molecule of our three million barrels per day that we hope to achieve in the coming years will be refined locally,” Umar said.

To achieve that goal, the NMDPRA is working with the NUPRC to enforce domestic crude supply obligations. Nigerian petroleum law requires producers to supply part of their crude output to domestic refineries.

Umar called the requirement “really, really important” for supporting the expansion of Nigeria’s refining industry.

Nigeria now has 1.125 million barrels per day of installed refining capacity, according to the NMDPRA. The country reached that level for the first time in its history.

The Dangote Petroleum Refinery and Petrochemicals (DPRP) provides the bulk of that capacity. The facility reached its 700,000-bpd nameplate capacity during tests in June.

The refinery has also helped Nigeria become a net exporter of refined petroleum products. Dangote supplies 80 percent of domestic demand while exporting products to West Africa and Europe, Nigeria Housing Market reported in May.

The agency’s 3 million-bpd production target represents almost twice Nigeria’s current output.

The NUPRC estimated June production at about 1.73 million bpd. Nigeria must therefore first almost double crude production before it can refine all of its output domestically. That expansion will require several years of investment.

However, refineries operated by the Nigerian National Petroleum Company Limited (NNPC Ltd) in Port Harcourt, Warri and Kaduna are operating below capacity.

The NNPC Ltd acknowledged in November 2025 that the facilities cannot match Dangote’s fuel quality.

The DPRP is also planning expansion to 1.4 million bpd.

However, concerns remain over the risks that a single dominant refiner could pose to the country’s fuel supply, as Agence Ecofin reported in May.

State-owned refineries remain part of the strategy. Their combined potential capacity exceeds 300,000 bpd. Yet the facilities have failed to reach their full potential despite more than $25 billion in public investment between 2003 and 2023.

The NNPC Ltd is now seeking private partners that will receive payment only when the refineries actually produce.

The approach contrasts with the previous model, which paid companies to rehabilitate the facilities regardless of their operating performance.