Crude oil prices fell sharply on Tuesday, with Brent crude dipping 8.45 percent to $90 per barrel and US West Texas Intermediate (WTI) dropping 8.58 percent to $86.77 per barrel, marking the first decline since the Middle East conflict erupted.

The drop follows Monday’s surge, when global crude prices climbed past $100 per barrel, the highest level since July 2022, amid fears of supply disruptions.

Analysts attribute the correction to a combination of geopolitical and market factors. European ministers discussed releasing strategic oil reserves to stabilize the market, while remarks from former US President Donald Trump helped ease investor fears. Trump had warned that “death, fire, and fury will reign upon them [Iran]” if Tehran blocked oil shipments through the Strait of Hormuz.

In response, Iran’s Islamic Revolutionary Guards Corps (IRGC) stated they would “determine the end of the war” and vowed that no oil would be exported from the region if US and Israeli attacks continued.

The Middle East conflict has already sent global oil prices soaring, with immediate impacts on fuel costs in Nigeria. The Dangote Petroleum Refinery recently raised its ex-gantry petrol price by N180, bringing it to N1,175 per litre.

Speaking on March 9, Dangote Petroleum CEO David Bird acknowledged the refinery’s exposure to international oil shocks, noting that global benchmarks dictate crude prices.

The recent price decline was further supported by Trump’s suggestion that the Middle East conflict could be resolved soon, easing fears of prolonged disruptions to global oil supply.