Global Oil Prices Fall to $90/Barrel Amid Trump Threat Over Strait of Hormuz

Crude oil prices fell to $90 per barrel on Tuesday, marking the first decline since the start of the Middle East conflict.

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.

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