Oil Price Rises to One Month High as US, Iran Resume War over Strait of Hormuz

Brent crude oil price rose on Tuesday by 4.19 percent to $86.79 per barrel, highest since June 12.

The US West Texas Intermediate surged by 3.16 percent to $80.61 a barrel.

The surge came after the US reimposed a naval blockade of Iran and renewed attacks between Washington and Tehran heightened concerns over energy flows through the Strait of Hormuz.

On July 12, Iran said it closed the Strait of Hormuz after its forces fired a naval cruise missile at a vessel it accused of sailing through an unauthorised route.

One month ago, global crude oil price dropped to $82 a barrel as the United States, Israel, and Iran reached a deal to end the Middle East war on all fronts including Lebanon, and reopen the vital Strait of Hormuz.

Following the development, the Federal Competition and Consumer Protection Commission (FCCPC) accused oil marketers of failing to pass on the benefits of falling global crude oil prices to consumers, saying recent reductions in pump prices were not commensurate with the sharp decline in crude prices.

A day after, Taiwo Oyedele, minister of finance and coordinating minister of the economy, said the federal government was engaging oil marketers and regulators to ensure reductions in global crude oil market prices are reflected more transparently in pump prices.

On July 10, the federal government convened oil and gas stakeholders to discuss fair pricing of petroleum products across the country.