Oil Prices Drop to $83 After US-Iran Peace Accord

Oil prices fell to $83 per barrel on Monday after the United States and Iran reached a peace agreement on Sunday, aimed at ending hostilities in the Middle East and reopening the Strait of Hormuz. The Brent crude global benchmark dropped from $87 per barrel on Sunday.

The agreement, announced by U.S. President Donald Trump, includes a partial reopening of the Strait of Hormuz and a 60-day ceasefire negotiation period.

U.S. officials indicated that the deal would involve the release of $25 billion in frozen Iranian assets, contingent upon Iran fulfilling certain conditions. The conflict, which began on February 28, had previously pushed crude oil prices above $100 per barrel, leading to increased fuel prices globally.

In Nigeria, there is anticipation of a significant drop in petrol prices, with Dangote Petroleum Refinery officials stating that petrol could fall to N900 per liter, although they cautioned that refinery costs remain high.