Global crude oil prices have returned to pre-conflict levels four months after tensions between the United States and Iran escalated. Brent crude, Nigeria's benchmark grade, traded at $72.32 per barrel on Wednesday morning as shipping activity through the Strait of Hormuz steadily recovered.
In April, when hostilities peaked, Brent crude surged above $100 per barrel, pushing petrol prices across Nigeria beyond N1,000 per litre. Iran's temporary closure of the Strait of Hormuz, a vital global shipping route for oil and gas, disrupted energy supplies and sent crude prices soaring.
Oil prices have declined consistently since the US and Iran signed a Memorandum of Understanding on June 17. The agreement created a 60-day framework for nuclear talks and measures aimed at ending the conflict.
Before the crisis began in early 2026, global crude traded at roughly $72.48 per barrel, meaning current prices sit almost exactly where they were beforehand. West Texas Intermediate crude now trades at $70.75 per barrel.
Nigeria's downstream market has begun to benefit from cheaper crude. Major suppliers like Dangote Refinery and the Nigerian National Petroleum Company (NNPC) Limited have cut their ex-depot prices, offering some relief to motorists.
Pratibha Thaker, regional director for the Middle East and Africa at the Economist Intelligence Unit, warned that vulnerability to geopolitical shocks remains. "Markets are still watching the region closely, and any renewed tensions could quickly send oil higher again," she said.
Maritime intelligence firm Kpler reported that vessel traffic through the Strait of Hormuz has risen sharply since the agreement took effect. However, ship movements still trail pre-conflict levels, when more than 100 vessels passed through daily.
Since June 18, a total of 284 ships have transited the strait, though this remains below the pre-conflict average of around 138 daily crossings. Tankers carrying crude oil, liquefied natural gas, fertilisers and other cargo now traverse the waterway more regularly as trade gradually normalises.
The US Navy has issued navigation guidance directing vessels through a southern passage considered safer from mines and hazards left during the fighting. Across Nigeria, petrol currently retails between N1,100 and N1,400 per litre, depending on location and fuel marketer.
The Federal Government has called on oil marketers and refiners to implement deeper price cuts to match the sustained decline in global crude prices. Officials believe further reductions would provide greater relief to consumers nationwide.
