Oil Prices Drop Amid US-Iran Ceasefire Negotiations

On Thursday, oil prices declined to $93 per barrel from a record $95 the previous day, following reports of progress in US-Iran ceasefire negotiations. The discussions aim to establish a 60-day memorandum of understanding to extend the ceasefire and address Iran's nuclear program.

Although President Donald Trump has not yet given final approval, the proposed agreement includes provisions for lifting US naval blockades and sanction waivers, allowing Iran to sell oil freely. This development is expected to positively impact the oil market, with traders anticipating improved crude supply and reduced geopolitical risks in the Middle East.

As a result, there are renewed expectations for a decrease in local petrol prices in Nigeria, despite the country being vulnerable to fluctuations in global crude prices. The ongoing tensions in the Strait of Hormuz, a critical oil transit route, continue to influence global energy supply stability.