Brent crude oil price dropped by 11 percent to $87.80 per barrel on Monday night.
US West Texas Intermediate (WTI) also dropped by 11.9
percent to $83.45 per barrel.
Earlier in the day, the price of Brent crude had dropped to
$90 a barrel, marking the first decline since the war in the Middle East began.
The latest oil price decline occurred after Chris Wright,
the United States energy secretary, 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.
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