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    HomeUncategorizedIran’s Renewed Hormuz Closure Stalls Expected Drop in Nigeria’s Petrol Prices

    Iran’s Renewed Hormuz Closure Stalls Expected Drop in Nigeria’s Petrol Prices

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    Hopes of a significant drop in petrol prices in Nigeria have been dashed following Iran’s decision to reclose the Strait of Hormuz, a critical global oil transit route.

    The strait, which had briefly reopened on Friday after a ceasefire between Iran and the United States, was shut again less than 24 hours later, with Iran citing continued blockade of its ports by the US.

    Iranian military authorities on Saturday announced that control of the strategic waterway had “returned to its previous state,” effectively restricting passage.

    The Strait of Hormuz accounts for about 20 per cent of globally traded crude oil, making it a key determinant of global oil prices. Reports indicated that Iranian gunboats fired at a merchant vessel attempting to navigate the route.

    Prior to the renewed tension, fuel marketers had predicted a drop in petrol prices from about ₦1,250 to around ₦900 per litre following the reopening of the strait.

    The spokesman of the Petroleum Products Retail Outlet Owners Association of Nigeria, Joseph Obele, had expressed optimism.

    “With the reopening of the Strait of Hormuz, Nigerians should expect a very significant reduction in petrol prices. Petrol will fall below ₦1,000 by next week, probably to ₦900 per litre,” he said.

    He noted that petrol prices were around ₦800 before the Middle East crisis escalated.

    However, Obele told journalists on Sunday that the renewed closure had stalled expectations of price relief.

    According to him, the current pricing trend would likely persist until both Iran and the US reach a lasting agreement.

    Meanwhile, US President Donald Trump accused Iran of violating the ceasefire agreement by attacking vessels in the Strait of Hormuz.

    “Iran decided to fire bullets yesterday in the Strait of Hormuz, a total violation of our ceasefire agreement!” Trump said.

    He also issued a stern warning to Tehran.

    “We’re offering a very fair and reasonable deal… if they don’t, the United States is going to knock out every single power plant and every single bridge in Iran. No more Mr Nice Guy!” he added.

    Despite the renewed tensions, global oil prices showed only marginal changes.

    Brent crude traded at about $90 per barrel on Sunday, slightly up from $88 before the reclosure, but still below the $95 recorded on Friday morning.

    Trump disclosed that negotiators are expected to meet in Islamabad, Pakistan, as part of efforts to sustain the ceasefire, which is due to expire midweek.

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