At $72, Oil Price Falls to Pre-Iran War Levels, Nigerians Await Impact

International crude oil prices have dropped below $72 a barrel, a level not seen since before the recent conflict involving Iran. This decline has erased the "war premium" that had previously driven prices up due to fears of energy supply disruptions.

The easing of tensions around the Strait of Hormuz, a critical oil shipping route, has allowed vessel movements to gradually resume. However, for many Nigerians, this global price reduction has not yet translated into lower domestic petrol prices. Fuel continues to sell for between N1,250 and N1,360 per liter, exacerbating inflationary pressures and increasing costs for transportation, food, and production.

The cost of crude oil had risen significantly since early March, peaking near $120 in April. The recent decrease follows a Memorandum of Understanding between the US and Iran on June 17, which initiated a negotiation period for Iran's nuclear program and measures to end hostilities. Maritime intelligence firm Kpler reported an increase in vessel transits through the Strait of Hormuz since the deal was signed.

In parallel, U.S. President Donald Trump has launched an investigation into major energy companies, including Shell and ExxonMobil. He accused them of "gouging" drivers by failing to reduce fuel prices despite the falling global oil costs. The President expressed frustration that the pump price reduction has not matched the significant drop in crude oil prices.

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Oil prices have come down so much and we are not seeing anything at the pump by comparison