Hopes for a sharp decline in petrol prices in Nigeria have been dampened following Iran’s decision to shut the Strait of Hormuz once again—a vital global oil shipping corridor.
The waterway had briefly reopened on Friday after a ceasefire between Iran and the United States, but was closed again within 24 hours. Iranian authorities cited the continued blockade of its ports by the US as the reason for the renewed action.
On Saturday, Iran’s military confirmed that the strait had “returned to its previous state,” effectively restricting movement through the channel. The Strait of Hormuz handles roughly 20% of the world’s crude oil shipments, making it a major influence on global oil prices. Reports also indicated that Iranian gunboats fired at a merchant vessel attempting to pass through the route.
Before the latest escalation, fuel marketers in Nigeria had projected a drop in petrol prices—from about ₦1,250 to around ₦900 per litre—following the initial reopening of the strait. The spokesperson of the Petroleum Products Retail Outlet Owners Association of Nigeria, Joseph Obele, had expressed optimism that prices could fall below ₦1,000.
However, Obele later noted that the renewed closure has halted expectations of any immediate price relief, adding that current price levels may persist until both countries reach a lasting agreement.
Meanwhile, former U.S. President Donald Trump accused Iran of breaching the ceasefire by attacking vessels in the strait. He warned of severe consequences if tensions continue, even as diplomatic efforts to sustain the truce are ongoing.
Despite the rising tensions, global oil prices have seen only slight movement. Brent crude traded at around $90 per barrel on Sunday, up marginally from $88 but still below the $95 recorded earlier.
Talks aimed at preserving the ceasefire are expected to take place in Islamabad, as both sides seek to avoid further escalation.