Crude oil futures tumbled on Tuesday, with Brent dropping over eight percent to $90 a barrel, as markets reacted to a stern warning from US President Donald Trump regarding potential Iranian disruptions in the Strait of Hormuz.
The benchmark Brent crude fell 8.45 percent to $90 per barrel, while US West Texas Intermediate slid 8.58 percent to $86.77 per barrel, reversing a surge that had pushed prices above $100 the previous day amid fears of supply shortages from the Middle East conflict.
Trump’s remarks, suggesting a swift resolution to the tensions, helped calm investor nerves, as he vowed “death, fire, and fury will reign upon them [Iran]” should Tehran attempt to block oil shipments through the vital waterway.
In retaliation, Iran’s Islamic Revolutionary Guard Corps declared it would “determine the end of the war” and warned that “no oil would be exported from the region” if US and Israeli assaults persisted.
The volatility has rippled to markets like Nigeria, where the Dangote Petroleum Refinery hiked its ex-gantry petrol price by 180 naira to 1,175 naira per litre.
Refinery CEO David Bird attributed the adjustment to global pressures, noting that “global benchmarks dictate crude prices.”
European officials are meanwhile considering releases from strategic reserves to mitigate further spikes, as the conflict continues to unsettle energy supplies.
