GLOBAL OIL PRICES PLUNGE AS GEOPOLITICAL FEARS EASE
GLOBAL OIL PRICES PLUNGE AS GEOPOLITICAL FEARS EASE
Crude oil prices fell sharply on Tuesday, with Brent crude dipping 8.45% to about $90 per barrel and U.S. West Texas Intermediate (WTI) sliding 8.58% to around $86.77 per barrel, marking the first significant price decline since the Middle East conflict erupted earlier this month.
- Brent crude, the international benchmark, eased back to roughly $90 per barrel, shedding nearly one‑tenth of its value on the session.
- WTI crude, the U.S. benchmark, fell to about $86.77 per barrel also down more than 8%.
The steep drop came after prices had surged to their highest levels in years above $100 per barrel on Monday, driven by supply worries linked to tensions in the Middle East Analysts say the sell‑off was largely triggered by comments from U.S. President Donald Trump, suggesting that the war involving the United States, Israel, and Iran might soon de‑escalate reducing fears of protracted supply disruptions. President Trump also made stern warnings to Iran over the Strait of Hormuz, signalling that any attempt to halt oil flows through the critical shipping route would draw severe retaliation a stance that helped calm markets despite the heightened rhetoric.
- The Strait of Hormuz through which about a fifth of the world’s crude typically flows has been at the centre of oil market anxiety due to the conflict in the Middle East.
- Iranian forces and allied groups have threatened to cut oil exports if U.S. and Israeli attacks continue, rhetoric that previously helped lift oil prices to multi‑year highs.European ministers have discussed releasing strategic oil reserves to counter sharp price surges a move that traders say helped ease short‑term upward pressure on crude prices.
The global oil price swing has already impacted fuel costs in Nigeria. Dangote Petroleum Refinery recently increased its ex‑gantry petrol price by around N180 to N1,175 per litre, illustrating how international crude markets feed through to local fuel pricing.
