Oil prices slip to two‑week low as Iran hints at Hormuz reopening
Oil prices fell to a two‑week low on Tuesday after Iran said it could reopen the Strait of Hormuz within seven days if the US eases military pressure and lifts its blockade on Iranian ports. WTI crude traded at $89.94 per barrel, down $2.43 (2.63%), while Brent crude stood at $98.29 per barrel, down $2.05 (2.04%). Just two days earlier, Brent had settled at $104.87, a drop of more than $6 per barrel.
The price slide follows Monday’s decline, which already reflected hopes of US‑Iran diplomatic engagement. Iran’s UN delegation said it has authority to revive talks, and President Masoud Pezeshkian is in New York for the General Assembly. Tehran’s proposal to end hostilities was delivered to Washington through mediators on September 16.
For Nigeria, a sustained drop in global crude could eventually ease downstream petroleum costs, but the latest move alone is not enough to cut pump prices immediately. Petrol still sells for about ₦1,400‑1,430 per litre in Lagos and ₦1,400‑1,450 in Abuja, and the country’s energy inflation rose to 4.69% in August from 4.40% in July. Pump prices depend on refined product costs, exchange rates, refinery pricing, transport and distribution, not just crude.
If the Hormuz reopening proceeds and crude prices stay low, lower feedstock and product costs could give refiners and marketers room to review pricing, potentially easing pressure on transport operators, businesses and households.