Oil Price Drops to $90/barrel after Trump’s Straits of Hormuz Threat

Crude oil prices dropped to $90 a barrel on Tuesday, marking the first decline since the war in the Middle East began.

Brent crude, the global oil benchmark, dipped by 8.45 percent to $90 a barrel. The US West Texas Intermediate also fell by 8.58 percent to $86.77 per barrel.

On Monday, global crude price surged past the $100 per barrel mark — the highest level since July 2022.

The downward trend comes after ministers of European countries discussed the release of oil reserves as part of measures to tame the price upswings seen recently in the global market.

The cool-off also follows remarks by US President Donald Trump suggesting that the war in the Middle East may end soon, which helped reduce fears of extended disruptions to global oil supply.

Trump also warned that “death, fire, and fury will reign upon them (Iran)” if they stopped the flow of oil within the Strait of Hormuz.

In response to Trump, on Tuesday, Iran’s Islamic Revolutionary Guards Corps (IRGC) said they would “determine the end of the war,” and Tehran would not allow “one litre of oil” to be exported from the region if US and Israeli attacks continued.

The war involving the United States (US), Iran, and Israel has raised global oil prices, leading to a hike in petrol prices in Nigeria.

In the latest adjustment, the Dangote Petroleum Refinery increased its ex-gantry price of petrol by N180 to N1,175 per litre.

On March 9, David Bird, the chief executive officer (CEO) of the refinery, said the plant was not immune to global oil shocks as it secures its crude on international benchmarks.