Oil price drops to $87/barrel amid reports US escorts tanker

Brent crude oil price dropped by 11 percent to $87.80 per barrel on Monday.

US West Texas ‌Intermediate (WTI) also dropped by 11.9 percent to $83.45 per barrel.

Earlier today, the price of the commodity dropped to $90 a barrel, marking the first decline since the war in the Middle East began.

According to Reuters, the oil price decline, which represents the steepest percentage drop of any session since 2022, occurred after Chris Wright, the United States (US) energy secretary, post on X that the American military had facilitated a shipment of oil out of the Strait of Hormuz.

Ships had suspended movement at Strait of Hormuz, a major route for crude oil supply, after Iran threatened to attack any ship passing the route.

In the now-deleted post, Reuters reported that Wright said the US President Donald Trump “is maintaining stability of global energy during the military operations against Iran”.

“The U.S. Navy successfully escorted an oil tanker through the Strait of Hormuz to ensure oil remains flowing to global markets,” the energy secretary said.

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

Trump also suggested that the war in the Middle East may end soon, which helped reduce fears of extended disruptions to global oil supply.

In response, Iran’s Islamic Revolutionary Guard Corps (IRGC) said Tehran will not allow “one liter of oil” to be exported from the region if US and Israeli attacks continue.

Following the spike in crude oil and ex-gantry petrol prices, retail stations’ pump prices have skyrocketed, resulting in transport fares doubling on some major routes in Nigeria.

Dangote Petroleum Refinery, on Tuesday, reduced its ex-gantry petrol price to N1,075 per litre — after three previous hikes.