Strait of Hormuz shipping recovers as Brent crude retreats to $72

Global crude oil prices have fallen back to levels seen before the United States-Iran conflict, exactly four months after geopolitical tensions first escalated. Brent crude traded at $72.32 per barrel on Wednesday morning as shipping activity through the Strait of Hormuz continued its steady recovery.

The benchmark grade, which serves as Nigeria’s pricing yardstick, had climbed above $100 per barrel in April at the height of the hostilities. That surge severely disrupted energy supplies and pushed domestic petrol prices in Nigeria beyond N1,000 per litre after Iran temporarily closed the strategic shipping artery.

Prices have declined steadily since the United States and Iran signed a Memorandum of Understanding (MoU) on June 17. The agreement established a 60-day framework for negotiations on Tehran’s nuclear programme and other measures to end hostilities. Current prices have now returned to the $72.48 per barrel average seen in early 2026.

Downstream relief materialises as ex-depot costs drop

The easing of international crude prices has begun to filter through to Nigeria’s downstream sector. Major suppliers, including the Dangote Refinery and the Nigerian National Petroleum Company (NNPC) Limited, have announced reductions in their ex-depot prices, providing modest relief for motorists.

Read also: Oil prices return to pre-war levels 4 months after US-Iran tensions

Despite the decline, with West Texas Intermediate (WTI) trading at $70.75 per barrel, market analysts urge caution. Economist Intelligence Unit Regional Director for the Middle East and Africa Pratibha Thaker warned that the market remains vulnerable to renewed geopolitical risks. She noted that markets are still watching the region closely, and any fresh friction could quickly drive oil prices higher.

Shipping volumes rise via strategic strait corridor

Maritime intelligence firm Kpler reported that shipping traffic through the Strait of Hormuz has increased significantly since the MoU was signed. Nevertheless, vessel movements remain below the levels recorded before the conflict, when more than 100 ships passed through the waterway each day.

Since June 18, the day after the agreement was reached, 284 vessels have transited the strait. Even so, daily averages remain below the pre-conflict norm of around 138 vessel crossings. The traffic includes tankers transporting crude oil, liquefied natural gas, fertilisers, and other commercial cargo, reflecting a gradual restoration of trade.

To safeguard passing trade, the US Navy has issued navigation guidance. The directive guides vessels through a southern passage considered safer from marine mines and other hazards left behind during the conflict. Across Nigeria, petrol continues to retail between N1,100 and N1,400 per litre depending on location, prompting the Federal Government to urge marketers to implement further price cuts.