Oil prices fall to $87 per barrel amid mixed signals over Strait of Hormuz

Global oil prices declined sharply on Monday night, even as uncertainty persists over developments around the Strait of Hormuz, one of the world’s most important oil shipping routes.

The price of Brent crude dropped 11 percent to $87.80 per barrel, while West Texas Intermediate (WTI), the U.S. benchmark, fell 11.9 percent to $83.45 per barrel.

Earlier in the day, Brent had already slipped to $90 per barrel, its first decline since the start of the ongoing conflict in the Middle East.

The latest drop followed a post on X by U.S. energy secretary Chris Wright, who claimed the U.S. military had helped move a shipment through the Strait of Hormuz. Ship traffic along the route had slowed after Iran threatened to attack vessels passing through the waterway.

In the now-deleted message, Wright said the U.S. Navy had escorted an oil tanker through the strait to keep crude supplies moving to global markets.

However, the statement was later contradicted by White House press secretary Karoline Leavitt. She said no such escort had taken place.

“I can confirm that the U.S. Navy has not escorted a tanker or a vessel at this time,” Leavitt said, adding that the option remains available if required.

Earlier, U.S. President Donald Trump warned Iran that “death, fire, and fury” would follow if the country blocked oil shipments through the Strait of Hormuz. Trump also suggested the conflict in the Middle East could end soon, easing market concerns about prolonged supply disruptions.

In response, Iran’s Islamic Revolutionary Guard Corps (IRGC) said Tehran would prevent any oil exports from the region if U.S. and Israeli attacks continue.

The volatility in global oil markets has already affected Nigeria’s domestic fuel market. Rising crude prices and increases in ex-gantry petrol rates recently pushed retail pump prices higher, leading to increased transport fares across several routes.

On Tuesday, the Dangote Petroleum Refinery lowered its ex-gantry petrol price to ₦1,075 per litre after three consecutive increases in recent weeks.