US War Against Iran Gulps $25 Billion as Oil Price Soars to $119

• Dangote raises petrol price to N1,275 per litre 

•Trump: I won’t lift blockade until Iran negotiates on nuclear programme

Emmanuel Addeh in Abuja

The cost of the ongoing United States military campaign against Iran has climbed to an estimated $25 billion, underscoring the scale of the deepening conflict between the two countries.

Separately, global oil prices surged to about $119 per barrel yesterday amid growing fears of supply disruptions triggered by the crisis, as tensions in the Middle East continue to unsettle energy markets.

Besides, the US President Donald Trump yesterday insisted that the blockade on Iran would remain in place until Tehran agrees to renegotiate its nuclear programme, signalling a likely prolonged standoff with significant implications for global stability.

In Nigeria, the impact was immediate, with the Dangote Refinery raising the ex-depot price of petrol to N1,275 per litre, a rise of N75 per litre at the depot, reflecting the spike in crude prices and associated supply costs.

A senior Pentagon official,  Jules Hurst, said on Wednesday the US war in Iran has cost $25 billion so far, providing the first official estimate of the military’s price tag for the conflict.

With just six months before mid-term elections in which Trump’s Republicans may face an uphill battle to keep their House majority, Democrats are riding high in public opinion polls as they attempt to link the unpopular Iran war with affordability.

Hurst, who is performing the duties of the comptroller, told lawmakers on the House Armed Services Committee that most of that money was for munitions. Hurst did not detail what that cost estimate included and whether it took into account the projected costs of rebuilding and repairing base infrastructure in the Middle East damaged in the conflict.

Rep. Adam Smith, the top Democrat on the House Armed Services Committee, responded to Hurst: “I’m glad you answered that question. Because we’ve been asking for a hell of a long time, and no one’s given us the number.”

The United States started carrying out strikes against Iran on February 28 and the two sides are currently maintaining a fragile ceasefire. The Pentagon has poured tens of thousands of additional forces into the Middle East, including keeping three aircraft carriers in the region.

Thirteen US troops have been killed in the conflict and hundreds wounded.

Disruptions in shipments of oil and natural gas since the war started have caused a run-up in US petrol prices and agricultural products such as fertilisers, on top of the long list of other high consumer prices, a Reuters report said.

Trump’s popularity has taken a beating since the US and Israel launched a war against Iran on February 28 that has led to a surge in petrol prices. Just 34 per cent of Americans approve of the US conflict with Iran, down from 36 per  cent in mid-April and 38 per cent in mid-March, a recent Reuters/Ipsos poll found.

In the meantime, Brent crude rose to $119 a barrel on Wednesday afternoon, the highest price so far this month and a rise of nearly 7 per cent in one day.

Iran has said it will continue to disrupt traffic travelling through the Strait of Hormuz in response to the US blockade.

The price of oil has seen sharp swings since the start of the war, as the key Strait of Hormuz has been effectively closed for weeks due to the conflict, a BBC report said.

Iran has severely restricted shipping through the strait which usually carries about a fifth of the world’s supply of oil and liquid natural gas in response to US and Israeli strikes that began about two months ago.

Earlier this month, Tehran warned that any vessel that approaches the strait would be targeted. The US then announced that its forces would intercept or turn back vessels travelling to or from Iran’s ports.

Analysis by BBC Verify showed that at least four vessels tracked from Iranian ports appear to have crossed the US blockade line. Despite the fluctuations of recent weeks, the price of oil remains much higher than the pre-conflict price of a barrel.

The price of Brent crude dropped to $90 a barrel on  April 17, after a ceasefire between Israel and Lebanon was announced. The US said it would pause attacks on Iran on  April 8. It remains much higher than the pre-conflict price of a barrel.

However, the oil benchmark has been rising steadily over the last 12 days, as the US continued its blockade.

Besides, the Iranian economy is facing a deepening crisis, with rapidly rising prices, falling currency value, and prospects of the oil exports grinding to a halt. According to the Statistical Centre of Iran, the annual inflation rate has risen to 53.7 per cent . The country’s currency, the rial, has fallen to a record low.

Around 2 million Iranians have lost their jobs, directly or indirectly, as a result of the war, the Iranian government had said last week.

On Wednesday, Trump urged Iran to ‘get smart soon’ and sign a deal, following days of deadlock in efforts to end the conflict. In a post on Truth Social, Trump said the country ‘couldn’t get its act together.’

The Wall Street Journal cited US officials as saying the president had instructed aides to prepare for an extended blockade of Iran’s ports in a bid to force Tehran’s hand.

Officials said Trump had opted to continue squeezing Iran’s economy and oil exports with the blockade as his other options – resuming bombing or walking away from the conflict – carried more risk, according to the report.

Iranian officials said on Tuesday the country could withstand the blockade as it was using alternative trade routes.

The World Bank on Tuesday forecast energy prices would surge by 24 per cent in 2026 to their highest level since Russia’s full-scale invasion of Ukraine four years ago, if the most acute disruptions caused by the Iran war end in May.

European stocks fell on Wednesday, as investors digested a wave of corporate earnings and awaited the US Federal Reserve’s latest interest rate decision.

Also, the US President Donald Trump said Wednesday that he has rejected the Iranian proposal of lifting the US blockade and opening the Strait of Hormuz.

He first wants some guarantees on curbing the Iranian nuclear programme, telling Axios in a phone interview that “they can’t have a nuclear weapon.”

“The blockade is somewhat more effective than the bombing. They are choking like a stuffed pig. And it is going to be worse for them. They can’t have a nuclear weapon,” Trump added.

While Trump praised the efficacy of the blockade, he would not discuss potential military plans during the interview.

“They want to settle. They don’t want me to keep the blockade. I don’t want to (lift the blockade), because I don’t want them to have a nuclear weapon,” he said.

Meanwhile, the Dangote Refinery has increased its ex-depot price for petrol by N75 per litre, a move that will inevitably affect the prices of fuel at the pumps nationwide.

Data from Petroleumprice.ng revealed that the refinery raised its petrol loading price from N1,200 per litre to N1,275 per litre, while coastal supply prices climbed to N1,215 per litre,  sending fresh shockwaves through the downstream.