Oil falls to two-week low after Iran signals plans to re-open strait within seven days

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 signals seven-day Hormuz reopening

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 US needs to announce that it wants to resolve the issue diplomatically, make that official, and then agree on a timeline for how the process will move forward,” the official told Reuters.

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.

Oil extends Monday’s sharp decline

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.

• Just yesterday, Nairametrics reported that Brent crude fell to $101.71 per barrel while US West Texas Intermediate (WTI) crude slipped below $100 as investors weighed renewed hopes of diplomatic engagement between the United States and Iran.
• Checks by Nairametrics on Monday, September 21, showed that at the opening of markets, WTI crude had lost about $2.10 to trade at $98.20 per barrel, while Brent crude declined by 2.04%, equivalent to $2.12, to trade at $101.75 per barrel.
• The Monday movement was already an indication of the direction the market was taking, with both benchmarks falling as investors priced in the possibility of reduced geopolitical risk and improved crude supply if diplomatic efforts between Washington and Tehran gain traction.

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.

Falling oil and Nigeria’s petrol prices

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.

• Nigeria’s petrol market responds to several factors beyond the international price of crude, including the cost of refined products, exchange-rate movements, refinery pricing, transportation and distribution costs. This means a short-term fall in Brent and WTI may not immediately translate into lower pump prices.
• On September 13, checks by Nairametrics showed that most filling stations in Lagos were selling petrol between N1,400 and N1,430 per litre, while MRS stations sold at N1,395. In Abuja, pump prices ranged between N1,400 and N1,450 per litre.

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.