Fresh diplomatic efforts between the United States and Iran have triggered a decline in global crude oil prices, sparking fresh optimism among Nigerians over the possibility of lower petrol prices in the coming weeks.
Brent crude dropped to around $93 per barrel on Thursday, down from approximately $95 recorded a day earlier, following reports that Washington and Tehran were close to finalising a 60-day memorandum of understanding aimed at sustaining a ceasefire and reopening talks on Iran’s nuclear programme.
According to Axios, negotiators from both countries had already agreed on the framework of the proposed deal, although final approval was still pending from US President Donald Trump, while Iran had yet to officially confirm its acceptance as of the time of filing this report.
The proposed agreement is expected to guarantee unrestricted movement through the Strait of Hormuz, one of the world’s most critical oil shipping routes that has experienced heightened tensions in recent months.
The report further stated that the arrangement could include a phased easing of the US naval blockade, sanctions waivers allowing Iran to resume unrestricted oil exports, and broader negotiations on sanctions relief and humanitarian assistance.
The development immediately impacted the international oil market, as traders reacted positively to expectations of improved crude supply and reduced geopolitical tensions in the Middle East.
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In Nigeria, the drop in crude prices has renewed public expectations that petrol pump prices may ease if the downward trend in the global oil market continues.
Despite being Africa’s largest oil producer, Nigeria remains heavily affected by fluctuations in international crude prices and foreign exchange rates. Petrol prices have remained high since the removal of fuel subsidies and the deregulation of the downstream petroleum sector.
The recent rise in global crude prices, driven partly by US-Iran tensions, had earlier forced the Dangote Petroleum Refinery to increase petrol prices, with industry experts noting that international oil prices continue to play a major role in determining local gantry prices.
The Strait of Hormuz remains strategically important to the global energy market, handling a significant share of the world’s crude oil exports. Analysts say any reduction in tensions around the corridor is often seen as a positive signal for global supply stability.
One US official quoted by Axios described the proposed deal as “an agreement to get everybody to the table,” adding that both countries would use the 60-day negotiation period to address issues surrounding Iran’s enriched uranium stockpile, sanctions relief, and the release of frozen Iranian assets.