Global oil prices declined on Monday amid renewed tensions between the United States and Iran.

The development followed US President Donald Trump’s announcement of plans to tighten economic sanctions on Iran and its allies under the proposed “Economic D Sanctions.”

Iranian authorities have vowed to retaliate against the proposed sanctions.

The escalating tensions reportedly contributed to a decline in vessel traffic through the Strait of Hormuz, further affecting the global energy market.

However, a market survey showed that Brent crude and West Texas Intermediate, WTI, fell by 1.84 per cent and 2.25 per cent respectively, to $92.65 and $85.17 per barrel as of Monday.

Brent and WTI had risen above $94 and $87 per barrel respectively at the weekend, amid concerns over supply disruptions.

The rise in global crude prices also coincided with increases in domestic petroleum product prices in Nigeria.

At the weekend, the price of Automotive Gas Oil, commonly known as diesel, increased by N100 per litre, while the price of Premium Motor Spirit, petrol, rose by N20 per litre.