Global oil prices fell sharply on Tuesday, with Brent crude dropping 8.45 percent to $90 per barrel and West Texas Intermediate (WTI) declining 8.58 percent to $86.77 per barrel.
Gatekeepers News reports that the decline marked the first drop in oil prices since the latest Middle East conflict began.
The fall followed Monday’s surge when crude prices climbed above $100 per barrel — the highest level since July 2022 — amid concerns about potential disruptions to global oil supply.
Market analysts said the correction was driven by a mix of geopolitical developments and market interventions. European ministers have discussed releasing strategic oil reserves to stabilise the market.
Comments by former United States president Donald Trump also helped calm investor fears. Trump warned that “death, fire, and fury will reign upon them [Iran]” if Iran attempted to block oil shipments through the Strait of Hormuz, a key global oil transit route.
In response, Iran’s Islamic Revolutionary Guard Corps (IRGC) said it would “determine the end of the war” and warned that no oil would be exported from the region if attacks by the United States and Israel continued.
The ongoing Middle East tensions have already pushed global oil prices higher, with immediate ripple effects on fuel costs in Nigeria.
The Dangote Petroleum Refinery recently increased its ex-gantry petrol price by N180, raising the price to N1,175 per litre.
Speaking on March 9, the refinery’s chief executive officer, David Bird, acknowledged the facility’s exposure to global oil market volatility.
According to him, international crude benchmarks largely determine the cost of crude supply to the refinery.
The latest drop in prices was also supported by Trump’s suggestion that the Middle East conflict could be resolved soon, easing fears of prolonged disruption to global oil supplies.
