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 United States eases military pressure and lifts its blockade on Iranian ports.
Checks by Nairametrics show that WTI crude was trading at $89.94 per barrel, down $2.43 or 2.63%, while Brent crude stood at $98.29 per barrel, down $2.05 or 2.04%.
The movement also marks a sharp reversal from recent price levels.
Just two trading days earlier, on Friday, Brent crude had settled at $104.87 per barrel, meaning the benchmark has since fallen by more than $6 per barrel.
Iran has indicated that it is prepared to reopen the Strait of Hormuz within seven days if Washington takes steps towards de-escalation and diplomacy. Reuters reported that the Iranian delegation at the United Nations General Assembly has authority to revive diplomacy with the United States.
A senior Iranian official said:
The comments followed a warning from Iran’s military central command that the United States could restart military operations with support from regional countries.
Iran warned that any such action would lead to retaliation “without limitations and considerations”, according to Reuters.
Iranian President Masoud Pezeshkian travelled to New York on Tuesday for the UN General Assembly, while discussions on an agreement to end hostilities could take place through mediators. Tehran said its proposal was delivered to Washington through mediators on September 16.
The prospect of reopening the strategic waterway has strengthened expectations of improved oil supply from the region, putting downward pressure on crude prices.
The latest fall follows a decline that had already become visible on Monday, when renewed hopes of US-Iran diplomatic engagement pushed both major crude benchmarks lower.
By Tuesday, the prospect of Iran reopening the Strait of Hormuz within seven days added to those supply expectations, pushing Brent below the $100 mark and extending the decline in both benchmarks.
A sustained decline in global crude prices could eventually ease some of the cost pressures facing Nigeria’s downstream petroleum market, although the latest movement is not enough on its own to signal an immediate reduction in petrol prices.
Already, the pressure has also been reflected in Nigeria’s broader energy costs. The country’s energy inflation rate rose to 4.69% in August 2026 from 4.40% in July, reversing the decline recorded in the previous month, according to the National Bureau of Statistics.
However, if crude prices continue to decline and the movement is sustained, lower feedstock and product costs could create room for refiners and marketers to review their pricing, potentially easing some pressure on transport operators, businesses and households.
