Oil Prices Plunge 14% to $94 Amid US-Iran Ceasefire: Impact on Nigeria’s Bonny Light

Nigeria’s Bonny Light crude has tumbled by 14.2%, falling to $94.41 per barrel from $110 per barrel, following the announcement of a two-week ceasefire between the United States and Iran. The news sent shockwaves through the global oil market, with traders reacting swiftly to the easing of geopolitical tensions.

Iran’s commitment to ensuring the safe passage of oil tankers through the Strait of Hormuz further calmed market fears, which had previously driven oil prices higher. Brent crude also saw a decline, dropping from $100 to around $94 per barrel, signaling optimism over improved stability in oil supply.

In addition to the ceasefire, the United States has lifted sanctions on Iranian and Russian oil exports, aiming to stabilize global markets after prior disruptions caused price surges. U.S. crude inventories also rose by 3.1 million barrels, bringing total stockpiles to 464.7 million barrels—about 2% above the five-year average—according to the Energy Information Administration.

Industry experts believe the fall in crude prices could benefit consumers worldwide. Speaking with Vanguard, Olatide Jeremiah, CEO of PetroleumPrice.ng, said, “The drop in crude oil prices will reduce operational costs for refiners globally. If this trend continues, we should expect lower prices of petroleum products, including petrol, offering relief to motorists and transporters currently burdened by high fuel costs.”

However, the impact on Nigeria’s economy could be mixed. While lower global oil prices may reduce government revenue, analysts suggest the effect may not be severe as long as budget benchmarks are maintained. Nigeria’s 2026 budget is based on 1.84 million barrels per day at $64.85 per barrel, with an exchange rate of N1,400 to the US dollar, leaving room to absorb price fluctuations.

source: vanguard