On Tuesday, the price of Brent crude dropped to $90 a barrel, marking the first decline since the start of the wat by the United States and Israel against Iran.
The price decline occurred after the United States Energy Secretary, Chris Wright, posted on X that the American military had facilitated the movement of a shipment from the Strait of Hormuz.
Ships had suspended movement at the 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, Wright said: “The U.S. Navy successfully escorted an oil tanker through the Strait of Hormuz to ensure oil remains flowing to global markets.”
Hours later, White House press secretary Karoline Leavitt denied the energy secretary’s claim.
“I can confirm that the US Navy has not escorted a tanker or a vessel at this time Though, of course, that’s an option the president has said he will absolutely utilise if and when necessary at the appropriate time,” Leavitt said.
Trump had earlier warned that “death, fire, and fury will reign upon them (Iran)” if the country 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.
