By Adedapo Adesanya

Oil prices dropped over 10 per cent on Monday after US President Donald Trump said he would postpone any military strikes against Iranian power plants for five days.

Brent futures fell by $12.25 or 10.9 per cent ‌to settle at $99.94 a barrel, while the US West Texas Intermediate (WTI) crude lost $10.10 or 10.3 per cent to trade at $88.13 per barrel.

President Trump claimed that constructive talks to resolve hostilities in the Middle East were going, hours before a deadline that threatened to escalate the four-week-old war over the Strait of Hormuz, where roughly 20 per cent of global oil and liquefied petroleum gas (LNG) flows through and which disruption has already driven a sharp spike in crude prices and heightened fears of a prolonged supply shock.

The Iranian media claimed there had been no direct or indirect contact with President Trump.

Iran’s Revolutionary ​Guards had said they would attack Israel’s power plants and those supplying US bases across the Gulf region if America follows through with Mr Trump’s threat to “obliterate” Iran’s ​power network. The war has already damaged major energy facilities in the Gulf and effectively halted shipping through the strait.

Amid the tussle, it was reported that two tankers bound for India sailed through the Strait of Hormuz on Monday carrying LNG loaded in the United Arab Emirates and Kuwait.

The head of the International Energy Agency (IEA), Mr Fatih Birol, estimated that since the current crisis, which started with bombings against the regime in Tehran on 28 February, there have been losses of 11 million barrels of oil per day and about 140 billion cubic metres of gas.

Mr Birol said that about 5 million barrels of oil had been lost in the two previous crises in 1973 and 1979, while Russia’s 2022 invasion of Ukraine removed about 75 billion cubic metres of natural gas from international markets.

The supply crunch has led to a temporary waiver of US sanctions on Russian and Iranian oil already at ‌sea. Indian ⁠refiners plan to resume buying Iranian oil while refiners elsewhere in Asia are examining such a move.

There was a surplus in global oil markets at the start of 2026, but recent developments have sparked shortages and growing anxieties around the world.

Beyond supply, some demand has also been affected as global air travel remains severely disrupted after the Iran war forced the closure of key Middle Eastern hubs including Dubai, Doha and Abu Dhabi, stranding tens of thousands of passengers.

By Aduragbemi Omiyale

The Director General of the Nigeria Employers’ Consultative Association (NECA), Mr Adewale-Smatt Oyerinde, has run to the rooftop to warn of the negative impact of rising crude oil prices on businesses and households in the country.

In a statement on Monday, he said the Middle East crisis was pushing up domestic energy costs, placing pressure on businesses and eroding the purchasing power of citizens, warning that without urgent intervention, the situation could escalate.

According to him, fuel prices have risen sharply in recent days, with petrol exceeding N1,300 per litre in some locations and diesel approaching N1,800 per litre, reflecting the impact of global oil price movements.

He stressed that energy costs sit at the heart of Nigeria’s economy, and energy is the engine of production and distribution, noting that businesses, particularly in manufacturing, agriculture, and logistics, are already under significant pressure. “What we are witnessing is Nigeria’s oil paradox. Rising crude oil prices are pushing up domestic energy costs, squeezing businesses and worsening the cost of living for citizens.

“Once fuel prices rise, the effects are immediate and widespread: transport costs increase, food prices rise, and the overall cost of doing business escalates.

“For many firms that rely on diesel for operations, current price levels are becoming increasingly difficult to sustain. Profit margins are shrinking, and businesses are being forced to either pass on costs or scale down operations,” Mr Oyerinde stated.

The NECA DG further noted that global oil prices have surged amid geopolitical tensions, with Brent crude rising above $110 per barrel, intensifying cost pressures across energy markets.

He clarified that while the Middle East conflict has contributed to the rise in oil prices, the impact is exposing deeper structural weaknesses, underinvestment, weak infrastructure, and inefficiencies in Nigeria’s energy value chain.

“This situation is not only driven by external factors, but it is also reflecting ongoing constraints within the energy value chain, including supply inefficiencies and infrastructure limitations,” he disclosed.

“The government must act swiftly to ease supply constraints, stabilise prices, and provide targeted relief to critical sectors, he declared, emphasising that, “If this trend continues unchecked, we risk business closures, job losses, and a deeper cost-of-living crisis.”

On the long-term outlook, Mr Oyerinde emphasised the need for structural reforms. Nigeria’s resilience will not be determined by oil prices, but by how effectively we manage them. This is a moment to strengthen institutions, improve transparency, and invest in sustainable energy solutions.

He concluded with a caution that if properly managed, “this could strengthen our economy. If not, the gains from rising oil prices will be completely eroded by inflation and economic hardship.”

By Adedapo Adesanya

The National Insurance Commission (NAICOM) has stressed that it has no intention of extending the deadline of the ongoing insurance recapitalisation exercise fixed for July 31, 2026.

The Commissioner for Insurance, Mr Olusegun Omosehin, at a high-level media briefing in Lagos, emphasised that “The 31 July deadline is sacrosanct.”

Mr Omosehin rationalised that NAICOM said it was not worried by the sluggishness of some underwriting companies towards the exercise.

“It is embedded in the law, and as a regulator, we do not have the powers to alter a date set by an Act of the National Assembly,” he explained, noting that the timeline is a statutory requirement under the Nigeria Insurance Industry Reform Act of 2025.

“We would not be drawn into a last-minute rush or entertain pleas for extensions,” Mr Omosehin warned, adding that any adjustment to the schedule would require a formal amendment of the Act by the National Assembly and subsequent presidential assent, a path he stated the commission is not prepared to take.

He further noted that while 20 insurance companies have officially stepped forward to begin their capital verification process, the level of urgency across the board does not match the requirements of the law.

“We want a stronger, more resilient industry that can support Nigeria’s target of a $1tn economy,” the Commissioner added, stressing that the ultimate goal is not just capital but the capability to underwrite large risks and protect policyholders.

“Capital alone is not the goal; it is about the capability to underwrite large risks,” he reiterated, while urging operators who may lack the “stand-alone stamina” to meet the new requirements to consider mergers and acquisitions immediately rather than waiting.

“We warn against ‘emergency marriages’ concluded at the eleventh hour, as such ad hoc arrangements often lead to lingering liabilities and post-merger integration crises,” Mr Omosehin said.

The NAICOM chief also confirmed that the regulator is currently scanning all operating firms and will soon make the results of this regulatory assessment public.

While re-emphasising the July 31 deadline, he warned that all funds raised must be deposited in designated escrow accounts.