Global oil prices plunged below the $100 mark after Donald Trump announced a conditional two-week ceasefire with Iran, easing immediate supply concerns.
As at 06:35 (WAT), Brent crude dropped to $95.05, down about 13%, while WTI crude fell to $97.18, also recording a sharp decline of nearly 14%.
The selloff followed Trump’s commitment to pause military operations if Iran restores safe passage through the Strait of Hormuz, a key global oil transit corridor.
Iran’s Foreign Minister, Abbas Araqchi, confirmed Tehran would halt attacks if strikes against Iran cease and transit arrangements are coordinated.
Despite the development, tensions remain elevated across the region, with reports of missile activity, drone operations, and civil defence alerts in several Gulf states.
For Nigeria, the sharp drop in crude prices is expected to translate into price reductions across the downstream sector, particularly at the Dangote Petroleum Refinery and private depots, where pricing is closely tied to international benchmarks.
Market watchers say the development could ease recent cost pressures, although volatility is likely to persist as traders monitor tanker movements through the Strait and the durability of the ceasefire.