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Oil prices remained near seven-month highs on Wednesday as the threat of military conflict between the United States and Iran continued to worry investors, with crucial talks between the parties scheduled for Thursday.
Nigeria’s benchmark, Brent crude futures, rose by 33 cents (0.5 per cent) to trade at $71.10 per barrel, while West Texas Intermediate (WTI) futures gained 22 cents (0.3 per cent) to $65.84.
Brent prices reached their highest level since July 31 on Friday, while WTI hit its highest since August 4 on Monday. Both contracts have held near those peaks as the U.S. positions military forces in the Middle East to pressure Iran into negotiating an end to its nuclear and ballistic missile programme.
An extended conflict could disrupt supplies from Iran—the third-largest crude producer in the Organisation of Petroleum Exporting Countries (OPEC)—and other nations in the key Middle East producing region.
“This uncertainty means the market will continue to price in a large risk premium and remain sensitive to any fresh developments,” ING commodities strategists noted on Wednesday.
Geneva Talks in Focus
U.S. envoys Steve Witkoff and Jared Kushner are scheduled to meet with an Iranian delegation for a third round of talks on Thursday in Geneva. Iran’s Foreign Minister, Abbas Araqchi, said on Tuesday that a deal with the U.S. was “within reach, but only if diplomacy is given priority,” according to CNBC.
“(U.S.) President (Donald) Trump has warned that without a deal, there will be ‘very bad consequences.’ Whether (Iran’s) concessions will meet the U.S.’s ‘zero enrichment’ red line remains to be seen,” said Tony Sycamore, IG market analyst, in a note.
Amid heightened tensions, Iran and China have accelerated talks for the purchase of Chinese anti-ship cruise missiles, according to Reuters sources. Such missiles would enhance Iran’s strike capabilities and could target U.S. naval forces assembled near the Iranian coast.
Trump is expected to deliver the traditional State of the Union address to Congress on Tuesday evening. Two White House officials, speaking on condition of anonymity, said Trump would discuss his plans for Iran but did not offer details.
Inventory Concerns Weigh on Market
While geopolitical tensions have supported prices, the market is also contending with concerns over large inventory gains as global supply exceeds demand.
According to market sources, the American Petroleum Institute (API) reported a massive increase in U.S. oil stockpiles of 11.43 million barrels for the week ended February 20.
UK Refineries Face ‘Extinction’ Risk
In separate developments, the UK government has launched a call for evidence on the future of the country’s downstream sector, while the Fuels Industry UK association called for urgent policy changes to protect the nation’s four remaining refineries from extinction.
The UK’s Department for Energy Security and Net Zero aims to publish a strategy for the downstream oil sector in autumn 2026.
The UK has been left with just four refineries after two processing sites closed over the past year: the Prax Lindsey refinery in Lincolnshire and the Grangemouth refinery in Scotland.
Despite their critical role in fuel supply and energy security, “refineries in the UK face challenges including falling domestic demand, increased international competition from newer competitors in the Middle East, Asia and Africa, ageing infrastructure, high energy costs, and growing costs from carbon emissions that are hard to abate,” the government stated.
Fuels Industry UK, which represents businesses supplying over 85 per cent of the UK’s transport energy, described the call for evidence as “a vital opportunity to meaningfully address the challenges of a sector currently being driven to the brink.”
The association noted that UK refineries pay up to £400 million ($540 million) annually in carbon costs, while non-UK competitors often face no such pricing, “giving imports an unfair advantage across the supply chain.”
It recommended that the UK introduce a Carbon Border Adjustment Mechanism (CBAM) by January 2028 to ensure imports carry the same carbon costs as UK-made fuels.
“Without urgent policy action to create a level playing field, we risk exporting jobs and emissions and continuing to deindustrialise rather than decarbonise credibly,” said Elizabeth de Jong, CEO of Fuels Industry UK.
Nigeria’s 2025 Licensing Round: Deadline Approaching
In an update on the Nigeria 2025 licensing round, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has reminded the public that registration and submission of applications for pre-qualification will close this Friday.
“The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) hereby notifies the general public that registration and submission of applications for Pre-Qualification under the Nigeria 2025 Licensing Round shall close at 4.30 pm on Friday, 27 February 2026, in accordance with Section 11.2 of the Licensing Round Guidelines,” a brief statement read.
“All Applicants are advised to ensure full compliance with the stipulated submission requirements within the prescribed timeline.”
