Oil price drops from $120 to $90 in 24 hours as Trump threatens Iran
Oil prices swung wildly this week as the US-Iran war sent global energy markets into a tailspin, rising to nearly $120 per barrel on Monday before crashing back below $90 after Donald Trump escalated his warnings against Tehran.
The dramatic reversal came after Trump threatened on Truth Social that Iran would be hit “twenty times harder” if it blocked oil flows through the Strait of Hormuz. The warning spooked traders who had been betting on a prolonged supply crisis, briefly pulling prices down, though markets remain deeply volatile.
Crude oil plunged below $90 a barrel following an earlier surge to almost $120 — a price swing of over 30% within just 24 hours. Trump also announced his administration would lift oil sanctions on some unnamed producing countries widely believed by analysts to include Russia and Venezuela, to ease the pressure on global supply.
But relief may be short-lived. The CEO of Saudi oil giant Aramco warned that the war threatens “catastrophic consequences” for global oil markets, describing a “severe chain reaction” affecting aviation, agriculture, automotive and other industries.
The root cause of the chaos is the Strait of Hormuz, a narrow waterway through which roughly a third of the world’s seaborne oil passes. Since the US-Israeli strikes on Iran began on February 28, merchant ships have been attacked, and shipping through the strait has largely ground to a halt. Iran’s Revolutionary Guard has warned that it will not allow the export of a single litre of oil from the region as long as the joint attacks from Israel and the US persist.
For Nigerians, the bigger concern is what happens at the pump. The Petroleum Retailers Outlets Owners Association of Nigeria had already warned that petrol could hit ₦2,000 per litre if the conflict persists, with local prices already creeping past ₦950 since the war began.
Analysts warn prices could still surge to $150 or beyond if the Strait remains closed, making any current dip a fragile reprieve rather than a resolution.
