Global crude oil prices declined sharply on Monday night as mixed signals emerged over developments in the Strait of Hormuz, a key route for international oil shipments.
Brent crude dropped by 11 percent to $87.80 per barrel. United States West Texas Intermediate (WTI) also fell by 11.9 percent to $83.45 per barrel.
Earlier in the day, Brent crude had already slipped to about $90 per barrel. The fall marked the first decline since hostilities began in the Middle East.
The latest drop came after Chris Wright, the United States energy secretary, claimed on X that the American military had helped move an oil shipment through the Strait of Hormuz.
Shipping activity in the strategic waterway had slowed after Iran threatened to target vessels passing through the area.
In a post that was later deleted, Wright wrote: “The U.S. Navy successfully escorted an oil tanker through the Strait of Hormuz to ensure oil remains flowing to global markets.”
However, the White House later rejected the claim.
Karoline Leavitt, the White House press secretary, said: “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.”
Earlier, former US president Donald Trump warned that “death, fire, and fury will reign upon them (Iran)” if Tehran attempted to halt the flow of oil through the Strait of Hormuz.
Trump also suggested that the conflict in the Middle East could end soon. The remark helped ease concerns about a prolonged disruption to global oil supply.
Iran responded through its Islamic Revolutionary Guard Corps (IRGC). The force said Tehran would not allow “one liter of oil” to leave the region if attacks by the US and Israel continue.
Meanwhile, rising crude prices in recent weeks have pushed up petrol costs in Nigeria. Retail fuel prices at filling stations increased sharply, which led to higher transport fares on some major routes.
Dangote Petroleum Refinery also adjusted its ex-gantry petrol price on Tuesday. The refinery reduced the price to N1,075 per litre after implementing three earlier increases.
