Global oil prices dropped significantly on Friday after US President Donald Trump confirmed the reopening of the Strait of Hormuz to commercial shipping. This development followed a statement by Iran's Foreign Minister Abbas Araghchi, who declared the vital maritime corridor "completely open" for the duration of the ongoing ceasefire between Iran and its regional adversaries. Araghchi stated, "In line with the ceasefire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open… on the coordinated route as already announced." Trump welcomed the development, confirming the reopening while clarifying that US naval restrictions on Iranian ports would remain in place until a broader agreement is reached.
The reopening of the Strait of Hormuz, through which roughly one-fifth of global oil supply flows daily, triggered an immediate sell-off in oil markets. Benchmark crude prices dropped to around $86 per barrel, down from $96 per barrel the previous day. This decline marks a sharp reversal from earlier price spikes above $100 per barrel, driven by fears of supply shortages following the closure of the waterway in late February. The price drop is seen as a relief to Nigerians, who have endured rising fuel prices since the war started, with a litre of fuel now sold at about N1,300, up from N760.
US President Donald Trump's confirmation of the Strait of Hormuz reopening has led to a significant drop in global oil prices. This development is a relief to Nigerians, who have faced rising fuel prices, with a litre of fuel now costing about N1,300, up from N760 when the war started. The price drop may help alleviate some of the economic pressures faced by ordinary Nigerians. The decline in oil prices, from $96 per barrel to around $86 per barrel, may also lead to a reduction in fuel prices in the coming days.
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