Oil Prices Steady Below $100 as Iran Re-Closes Strait of Hormuz Amid Rising Tensions

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Global crude oil prices held steady below the $100 per barrel benchmark on Sunday, despite renewed tensions in the Middle East following Iran’s decision to shut the strategically vital Strait of Hormuz once again.

Market data showed that West Texas Intermediate crude was trading at $83.85 per barrel, while Brent crude stood at $90.38 per barrel at the time of filing this report. The figures represent a relatively unchanged position compared to Saturday’s closing prices, suggesting a cautious response from global markets despite escalating geopolitical developments.

The latest development comes just hours after Iran initially announced the reopening of the Strait, a move that had earlier triggered a sharp decline in oil prices. At the time, WTI and Brent crude recorded significant drops of 11 percent and 9 percent respectively, reflecting market optimism over the temporary easing of supply concerns.

However, the situation quickly reversed after Iranian authorities declared a fresh closure of the waterway, citing ongoing disputes with the United States. Iran’s military leadership accused the US of maintaining what it described as an illegal blockade in the region, insisting that the Strait would remain shut until American forces withdraw their presence.

Reacting to the move, Donald Trump condemned Iran’s actions, characterizing the repeated closures as an act of “blackmail” aimed at exerting pressure on the international community. The renewed standoff underscores the fragile nature of the situation in the Gulf region, where the Strait of Hormuz serves as a critical passage for nearly a fifth of the world’s oil supply.

As the broader Middle East crisis stretches into its 50th day, the economic consequences are becoming increasingly evident across global markets. Countries heavily dependent on imported petroleum products are particularly vulnerable to the volatility, with supply uncertainties continuing to influence pricing dynamics.

In Nigeria, the impact has been swift and pronounced. Domestic petrol prices have surged significantly, with retail rates now ranging between N1,290 and N1,350 per litre as of Sunday morning. This marks a sharp increase from the approximate N900 per litre recorded prior to the escalation of the Iran-US-Israel conflict.

Analysts warn that prolonged disruption in the Strait of Hormuz could further strain global energy markets, potentially pushing prices higher in the coming weeks. For Nigeria and other import-dependent economies, sustained instability may translate into increased inflationary pressures and heightened cost of living for citizens.

While oil markets have so far remained relatively stable, traders and policymakers alike continue to monitor developments closely, as any further escalation could trigger sharper price movements and broader economic repercussions worldwide.