Global oil prices continued to decline Monday after the United States and Iran reached a ceasefire agreement aimed at ending months of hostilities and reopening the strategic Strait of Hormuz.
Brent crude, the international oil benchmark, fell from about $87 per barrel on Sunday to $83 per barrel on Monday, according to industry reports. The decline followed confirmation by both countries that an agreement had been reached to de-escalate tensions and restore maritime access through the vital shipping route.
The development has raised expectations of lower fuel prices in Nigeria and other markets heavily affected by rising crude costs during the conflict.
Crude oil prices had surged from below $70 per barrel after fighting between the United States and Iran escalated on Feb. 28. During more than three months of hostilities, prices climbed above $100 per barrel and at times exceeded $120, contributing to higher fuel costs worldwide.
The latest decline has fueled speculation that petrol prices in Nigeria could drop significantly if stability in the region is sustained. Industry sources said pump prices could fall to around 900 naira per litre in the coming weeks, although refiners cautioned that existing inventories purchased at higher crude prices could delay immediate reductions.
According to Reuters, a U.S. official said a memorandum of understanding was signed by President Donald Trump, Vice President JD Vance and Iranian Parliament Speaker Mohammad Bagher Qalibaf.
Trump said the full text of the agreement would be released following a formal signing ceremony scheduled for Friday. Under the terms announced by U.S. officials, the agreement includes the immediate reopening of the Strait of Hormuz and the removal of U.S. restrictions affecting Iran.
The deal also extends the ceasefire for a 60-day negotiation period during which both sides are expected to address outstanding issues, including the future of Iran’s nuclear program.
Reuters reported that a senior U.S. official said Washington is prepared to begin releasing frozen Iranian assets as part of a phased confidence-building process tied to compliance with the agreement.
Before the deal was announced, an Iranian official told Reuters that the draft agreement included provisions for the release of up to $25 billion in frozen Iranian funds, although U.S. officials have maintained that any release would depend on Iran meeting specific conditions.
In Nigeria, consumers and industry operators are closely monitoring developments, hoping that lower crude prices will translate into reduced fuel costs. However, officials at the Dangote Petroleum Refinery cautioned that immediate price cuts may be limited because the refinery still holds crude purchased at higher prices during the conflict.
