Global oil prices drop amid US-Iran hostility

Global oil prices experienced a drop on Monday due to ongoing tensions in the Middle East, particularly following the escalation of a trade war between Iran and the United States. President Donald Trump had announced plans to impose economic sanctions on Iran and its allies under the proposed "Economic D Sanctions." Iran, in response, vowed to retaliate against these proposed sanctions. This tension led to a decrease in vessel traffic in the Strait of Hormuz, which further affected the global energy market.

According to a market survey conducted by DAILY POST, Brent crude and West Texas Intermediate (WTI) crude oil prices both declined by 1.84 percent and 2.25 percent, respectively. Brent crude, which had risen above $94 per barrel at the weekend, fell to $92.65 per barrel, while WTI, previously above $87 per barrel, dropped to $85.17 per barrel as of the report filing on Monday.

This decline in global oil prices ultimately led to an increase in domestic petroleum product prices in Nigeria. The price of Automotive Gas Oil (diesel) surged by N100 per litre, while Premium Motor Spirit (petrol) saw a price increase of N20 per litre.