The Federal Government has warned that rising geopolitical tensions in the Middle East may transmit fresh shocks to Nigeria through rising energy prices, capital flows and global supply chains.

The government added that it will continue to monitor developments closely and adjust policy measures where necessary to minimise disruptions, sustain investor confidence and protect the welfare of Nigerians.

In a statement by the Assistant Director of Information and Public Relations at the Federal Ministry of Finance, Uloma Amadi, the ministry said the Economic Management Team (EMT) had begun reviewing the possible economic consequences of the crisis.

According to the ministry, the EMT, chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, recently met to assess the implications of escalating tensions involving the United States, Israel and Iran.

The minister also chaired a Naira-for-Crude policy coordination meeting where developments in global energy markets and their domestic implications were discussed.

Officials identified three key channels through which the crisis could affect Nigeria’s economy.

The first relates to volatility in global crude oil and gas markets.

They said rising energy prices could translate into higher domestic costs for petroleum products and other energy-related inputs.

The second channel involves financial markets and capital flows. Heightened geopolitical risks often push investors toward safer assets, potentially reducing capital inflows into emerging markets such as Nigeria.

The third concerns global logistics and supply chains. Disruptions to major shipping routes or energy corridors could raise freight costs and increase pressure on domestic prices.

Meanwhile, Iran’s Islamic Revolutionary Guard Corps (IRGC) has warned that it could block oil shipments through the Strait of Hormuz as tensions escalate during the US-Israel conflict with Iran.

A spokesperson for the IRGC’s Khatam al-Anbiya Headquarters said any vessel linked to the United States, Israel or their allies would be considered a legitimate target.

“You will not be able to artificially lower the price of oil. Expect oil at $200 per barrel,” the spokesperson said, adding that regional insecurity could drive prices sharply higher.

The Strait of Hormuz, through which about one-fifth of global oil supplies pass, remains a critical chokepoint in the world’s energy market.

Disruptions there, alongside production slowdowns in some Gulf countries, have raised fears of further global supply shocks. (Daily Trust)

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