At $72, Oil Price Falls to Pre-Iran War Levels, Nigerians Await Impact

•  Trump orders probe into reasons pump prices remain high 

•  Baker Hughes strikes long-term deal with ANOH gas

Emmanuel Addeh in Abuja

International crude oil prices have tumbled to levels last seen before the outbreak of hostilities involving Iran earlier this year, with Nigerians looking forward to a corresponding reduction in domestic petrol prices, which have remained stubbornly high despite the sharp decline in the global oil market.

Brent crude, the global benchmark against which Nigeria’s oil is priced, briefly fell below $72 a barrel yesterday before recovering slightly to about $73, effectively erasing the war premium that had pushed prices significantly higher following the conflict and fears of disruptions to global energy supplies.

The decline followed improving conditions around the Strait of Hormuz, one of the world’s most strategic oil shipping routes, as vessel movements gradually resumed after months of uncertainty triggered by tensions in the Middle East.

For many Nigerians, however, the sharp drop in crude prices has yet to translate into relief at filling stations, where petrol continues to sell for between N1,250 and N1,360 per litre depending on location and marketer.

The development has reignited calls for downward price adjustments, especially as crude oil accounts for the largest component of petrol production costs and import pricing. Since the outbreak of the conflict, domestic fuel prices have remained elevated, worsening inflationary pressures and increasing transportation, food and production costs across the economy.

The cost of crude has been moving sharply lower since the US and Iran signed a Memorandum of Understanding (MoU) on June 17, which set out a 60-day period for negotiations on Tehran’s nuclear programme and other measures to end the war.

Representatives from the two sides met in Switzerland last weekend for talks to end the war, which resulted in the US partially lifting sanctions on Iranian oil exports. The number of vessels crossing the Strait of Hormuz has risen significantly since the MoU was signed, according to maritime intelligence firm Kpler.

Its latest data suggests 284 vessels have made the transit from June 18, the day after the deal was signed, although that is still well below the pre-conflict average of some 138 crossings each day.

The ships passing through the waterway in recent days include those carrying crude oil, liquefied natural gas (LNG), fertiliser and other goods, Kpler told the BBC.

The price of crude rose rapidly above $80 from early March and peaked at just below $120 in April. The current rate as of Jun 25, 2026 was back down to below $80, similar to before the Iran war began.

Also, US President Donald Trump on Wednesday ordered an investigation into major energy companies, accusing Shell, ExxonMobil and other firms of “gouging” drivers by not reducing fuel prices even as oil costs fell.

“Oil prices have come down so much and we are not seeing anything at the pump by comparison the way they should be,” Trump told reporters in the Oval Office.

The American Petroleum Institute, which represents the oil and gas industry in the US, said fuel prices “don’t move in lockstep with crude oil”. British energy firms have faced similar accusations of unfairly hiking petrol prices since the Iran war.

Meanwhile, in a separate development, global energy technology company, Baker Hughes, has secured a long-term service agreement with the ANOH Gas Processing Company (AGPC) for the operation and maintenance of critical equipment at the ANOH Gas Processing Plant in Imo State.

The agreement covers lifecycle support services, engineering advisory services and digital monitoring solutions for the facility, which is regarded as one of Nigeria’s key gas infrastructure projects.

Managing Director of ANOH Gas Processing Company, James Makinde, said the partnership would help ensure reliable operation of critical turbomachinery equipment required for the plant’s operations and support Nigeria’s domestic energy objectives.

“It is a pleasure to collaborate with a globally trusted energy technology leader like Baker Hughes on this critical project. The reliable performance of critical turbomachinery equipment is essential to the successful operation of the ANOH Plant and to delivering on Nigeria’s domestic energy supply goals,” he stated.

Chief Growth and Experience Officer of Baker Hughes, Maria Claudia Borras, described the agreement as evidence of the strong relationship between both organisations and reiterated the company’s commitment to supporting Nigeria’s energy transition objectives.

“We are leveraging our regional expertise and pairing it with our advanced digital technologies and services, supporting the delivery of reliable, efficient and affordable power solutions and helping Nigeria realise its goal to move to lower-carbon fuel sources,” Borras said.

The ANOH Gas Processing Plant is expected to play a significant role in boosting domestic gas supply for power generation and industrial use, while supporting Nigeria’s broader strategy of leveraging natural gas as a transition fuel in its drive for cleaner energy sources.