Oil prices recorded a sharp decline on Monday after the United States and Iran reportedly agreed to suspend military attacks, raising hopes that diplomatic efforts could prevent further escalation in the Middle East. The easing of geopolitical tensions calmed global energy markets, pushing Brent crude below the $91-per-barrel mark after weeks of uncertainty.
Brent crude, the international benchmark for oil prices, fell by 6.76 percent to $90.24 per barrel, while the US West Texas Intermediate (WTI) dropped 6.04 percent to $83.92 per barrel. The significant decline follows reports that both countries agreed to pause hostilities over the weekend, ending nearly two weeks of military exchanges that had fueled fears of supply disruptions.
Speaking on Sunday, US Ambassador to the United Nations Mike Waltz revealed that President Donald Trump had decided to temporarily halt US strikes on Iran to create room for diplomatic negotiations. According to Waltz, the decision was aimed at allowing peace talks to progress without further military escalation. In a similar move, a senior Iranian official told Reuters that Tehran would also suspend its attacks, provided the United States maintained the ceasefire.
The latest development marks a dramatic shift from last week when oil prices surged to $100 per barrel following reports of attacks on vessels in the Red Sea. The spike had sparked concerns over global oil supply, triggering volatility across international energy markets and placing additional pressure on oil-importing nations.
In Nigeria, the earlier surge in crude prices had already translated into higher fuel costs. Dangote Petroleum Refinery recently increased its ex-gantry petrol price from ₦1,075 to ₦1,215 per litre while resuming the sale of petrol in naira. Fuel importers had also signaled plans to raise depot prices from ₦1,230 to ₦1,350 per litre. Although the latest drop in global oil prices offers hope for market stability, industry observers say it may take time before consumers feel any relief at the pump.
source: The cable
