Finance Minister Wale Edun convened the country’s Economic Management Team to assess how rising geopolitical tensions could affect crude oil prices, capital flows and logistics costs, the ministry said in a statement.

Officials said instability linked to the conflict is already pushing up global crude prices, with concerns centred on possible disruptions near the Strait of Hormuz, one of the world’s most critical oil shipping routes.

The ministry said higher oil prices could translate into increased domestic costs for fuel, diesel, cooking gas and fertiliser, potentially placing additional pressure on households and businesses.

Authorities warned that prolonged instability in the Middle East could also intensify inflationary pressures and raise living costs.

Government officials said they are closely tracking a range of economic indicators, including crude price movements, exchange-rate pressures, capital flows, fiscal risks and foreign reserve levels.

The review comes as policymakers weigh potential spillover effects from global market volatility on the country’s financial stability.

The finance ministry said Nigeria entered the period with strengthening macroeconomic fundamentals, citing gross domestic product growth of 4.07% in the fourth quarter of 2025.

Authorities said policies would remain under review to protect households and businesses while maintaining investor confidence as global market conditions evolve.

Crude prices surged as much as 28% to nearly $120 per barrel during trading, the highest level since July 2022, as the week-long war prompted some major Middle Eastern producers to curb supplies while investors assessed the risk of prolonged disruption to shipping through the Strait of Hormuz. Benchmark Brent crude was last trading about 16% higher at roughly $107 per barrel.

The sharp move in energy markets triggered a broad sell-off in sovereign bonds, reflecting expectations that higher oil prices could fuel inflation pressures at a time when policymakers remain focused on price stability.

Investors have been closely monitoring the geopolitical fallout from the conflict in the Middle East, a region responsible for a substantial share of global crude supply. The surge in oil prices has intensified concerns that supply disruptions could become prolonged if the conflict escalates further or maritime routes remain threatened.

The rapid rise in crude prices revived worries that energy-driven inflation could complicate the outlook for monetary policy in major economies.

Higher oil costs can feed into transportation, manufacturing and consumer prices, potentially forcing central banks to reassess interest-rate paths if inflation expectations begin to climb again. Market participants said the scale and speed of the oil rally had already begun reshaping expectations across financial markets.

The latest moves underscore how quickly geopolitical tensions in key energy-producing regions can reverberate across global financial systems, affecting commodity markets, bond yields and investor risk sentiment.

Georgieva delivered the remarks at a symposium hosted by Japan Ministry of Finance in Tokyo, where she said the conflict was once again testing the resilience of the global economy.

Georgieva said higher energy costs triggered by the regional conflict could have broad economic implications if oil prices remain elevated for an extended period.

According to her estimate, a persistent 10% rise in oil prices would translate into roughly a 0.4 percentage point increase in global inflation.Her comments underscore concerns among policymakers that geopolitical tensions in the Middle East could disrupt energy markets and complicate efforts by central banks to bring inflation under control.

Addressing officials and economists at the Tokyo symposium, Georgieva urged governments and central banks to prepare for heightened uncertainty in the global economy.

“My advice to policymakers in this new global environment is think of the unthinkable and prepare for it,” she said, referring to the potential economic shocks stemming from geopolitical instability.

Georgieva added that the latest Middle East conflict was placing additional strain on an already fragile global recovery, highlighting the need for policymakers to remain vigilant as risks to growth and price stability evolve.

The search for stability has intensified as financial markets respond sharply to the conflict, with currencies and commodities moving unpredictably. The dollar has rebounded after a period of weakness over the past year, while traditional refuge currencies such as the Swiss franc and Japanese yen have weakened. Gold, meanwhile, has retained its appeal despite bouts of volatility.dollar regains defensive roleThe U.S. dollar has strengthened as investors reassess its role as a defensive asset during geopolitical shocks. Analysts say the currency’s response partly reflects the United States’ position as a net energy exporter, which can benefit when oil prices surge during conflicts.Benchmark Brent Crude climbed above $80 a barrel as tensions in the Middle East raised concerns about supply disruptions, a move that analysts say can support the U.S. economy relative to energy-importing nations.“The dollar has some safe-haven characteristics, but it is context specific,” said James Lord, head of FX strategy at Morgan Stanley.However, Lord added that the currency’s traditional haven role is not guaranteed. Policy uncertainty in the United States has weakened some of the structural factors that previously made the dollar a default refuge in times of global stress.gold’s long-term appeal persistsDespite recent price swings, gold continues to hold strong credibility as a safe-haven asset among investors.

Analysts note that the metal has surged about 240% since the start of the decade, reflecting persistent demand amid concerns over inflation, geopolitical tensions and rising global debt.Gold prices dropped sharply earlier in the week, a move market participants attributed partly to investors selling profitable positions to offset losses in other assets as market sentiment deteriorated.Still, analysts say that short-term volatility does not undermine gold’s broader appeal during periods of uncertainty. The metal’s reputation as a store of value often draws inflows during crises involving inflation risks, geopolitical tensions or financial instability.shifting behaviour of haven assetsThe current market environment highlights how traditional defensive assets can behave differently depending on the underlying cause of market turmoil.While the dollar has regained some safe-haven demand during the latest bout of geopolitical tension, currencies such as the Swiss franc and the Japanese yen often considered classic refuges have weakened.Analysts say the divergence reflects the complexity of modern global markets, where energy dynamics, policy expectations and investor positioning can alter how traditional havens perform.The renewed volatility across currencies, commodities and bonds underscores the challenge investors face in identifying reliable protection during geopolitical shocks. With markets adjusting rapidly to developments in the Middle East, investors continue to reassess which assets offer the most consistent shelter during periods of heightened uncertainty.