Petrol price may ease as crude oil nears $90 per barrel
Petrol price may ease as crude oil nears $90 per barrel
Nigeria’s petrol prices may come under downward pressure following a fresh decline in international crude oil prices, as diplomatic
Nigeria’s petrol prices may come under downward pressure following a fresh decline in international crude oil prices, as diplomatic efforts to end the conflict between the United States and Iran raise hopes of restoring crude oil and petroleum product shipments through the Strait of Hormuz.
Brent crude, the global benchmark, fell 6.32 per cent to $92.11 per barrel yesterday, extending its 16 per cent decline last week, the steepest weekly drop in recent times. West Texas Intermediate (WTI), the U.S. benchmark, also declined by 5.01 per cent to $86.28 per barrel as of 9:31 p.m. WAT.
The decline followed reports that Qatar’s Prime Minister was heading to the White House with an Iranian proposal for an interim agreement aimed at reopening the Strait of Hormuz, a critical shipping corridor through which about 20 million barrels of crude oil and petroleum products moved daily before the conflict.
Under the reported terms, Iran would reopen the strait and halt attacks on Gulf tankers, while Washington would lift its naval and economic blockade of Iran and release $8 billion in Iranian funds frozen in Qatar. Tehran would also abandon its demand to control the waterway and impose transit fees.
However, the proposed arrangement has not been confirmed by either government, while disagreements over Iran’s nuclear programme and other conditions continue to complicate negotiations.
U.S. President Donald Trump said on Sunday that renewed American strikes against Iran were highly unlikely if negotiations produced a strong agreement. However, U.S. Secretary of State, Marco Rubio, maintained that both sides remained far from a breakthrough, describing some Iranian demands as unacceptable.
Iranian Foreign Minister Abbas Araghchi, meanwhile, said Tehran was prepared to reopen the Strait of Hormuz within two days, provided the war ended on all fronts.
The uncertainty has prevented a complete recovery in market confidence. Shipping through the strait came under fire again over the weekend, with Washington and Tehran reporting attacks on vessels in or around the waterway.
For Nigeria, the latest movement in crude prices could provide some relief to motorists and businesses struggling with elevated petrol prices since the conflict began on February 28, 2026, especially as demand begins to mount towards Yuletide.
