Oil Prices Fall 5.5% Amid US‑Iran Tensions, Boosting Hope for Lower Gas Prices

By Obas Esiedesa, Abuja

Crude oil prices dropped 5.5 percent on Monday, falling to roughly $97.60 per barrel. The decline comes as optimism grows over a potential peace deal between the United States and Iran that could ease tensions around the Strait of Hormuz, a key artery for global oil transit.

Brent crude, the international benchmark, slipped below the $100‑per‑barrel threshold after weeks of volatility sparked by the conflict. The Strait of Hormuz handles about one‑fifth of worldwide crude trade, so any disruption there has a wide‑ranging impact.

The price fall followed remarks by former U.S. President Donald Trump, who said a deal with Iran was “largely negotiated.” He added that a final agreement must be “great and meaningful,” warning that otherwise there would be “no deal.” Trump highlighted that talks focus on reopening the Strait of Hormuz and promoting broader regional stability.

U.S. Secretary of State Marco Rubio also expressed cautious optimism. He acknowledged progress in negotiations but noted that significant disagreements remain. Rubio warned that allowing Iran to impose a tolling system on vessels passing through the Strait would render any diplomatic agreement unacceptable.

The sharp decline in crude prices has sparked hope that Nigerian motorists, who currently face high petrol costs, may see relief.

Petrol prices in Nigeria range from N1,250 to N1,400 per litre, varying by location and marketer. In Abuja and parts of northern Nigeria, prices exceed N1,360 per litre, while some remote and border communities are paying close to N1,400 per litre.

Recent increases in petrol prices have been driven by adjustments in refinery and depot costs linked to rising crude oil prices.

The Major Energies Marketers Association of Nigeria (MEMAN) reported two days ago that the petrol gantry price at Dangote Refinery stood at N1,275 per litre, while the coastal price was N1,215 per litre. The association estimated import parity into tank at N1,230.34 per litre.

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