Closure of Strait of Hormuz Stalls Expected Fuel Price Drop

Nigeria’s hopes for cheaper petrol have dimmed after Iran reclosed the strategic Strait of Hormuz. The waterway handles about 20% of global oil trade and briefly reopened under a ceasefire deal with the US. Fuel marketers had forecast that prices could fall from ₦1,250 to around ₦900 per litre once shipping resumed. But Iran’s decision to resume control of the strait and reports of gunboats firing on merchant vessels have dashed those expectations. The Petroleum Products Retail Outlet Owners Association spokesman noted that prices will stay at current levels until a lasting ceasefire between Iran and the US is reached. Global oil benchmarks have risen slightly, with Brent crude climbing from $88 to $90 per barrel since the strait’s closure. US statements warning of strikes on Iranian energy infrastructure if talks fail have added further uncertainty to the market.

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