Petrol Prices May Crash in Nigeria as Global Oil Prices Plunge 16% Amid US-Iran Peace Talks
Petrol prices in Nigeria could come under significant downward pressure following a sharp decline in international crude oil prices, as renewed diplomatic efforts to end the US-Iran conflict raise hopes of reopening the strategically important Strait of Hormuz.
Brent crude, the global oil benchmark, dropped by 6.32 per cent to $92.11 per barrel yesterday, extending its 16 per cent decline last week in one of its steepest weekly falls in recent times. Similarly, West Texas Intermediate (WTI), the US benchmark, fell by 5.01 per cent to $86.28 per barrel as of 9:31 p.m. WAT.
The latest market decline followed reports that Qatar’s Prime Minister was heading to the White House with an Iranian proposal for an interim agreement aimed at restoring shipping activities through the Strait of Hormuz.
The critical waterway, which previously handled approximately 20 million barrels of crude oil and petroleum products daily before the conflict, has become a major flashpoint in the confrontation between Washington and Tehran.
Under the reported proposal, Iran would reopen the strait and suspend attacks on Gulf tankers, while the United States would lift its naval and economic blockade of Iran and release $8 billion in Iranian funds frozen in Qatar.
Tehran would also reportedly abandon its demand for control of the strategic shipping corridor and its proposal to impose transit fees on vessels passing through the waterway.
However, neither the Iranian nor American government has officially confirmed the proposed arrangement, while disagreements over Iran’s nuclear programme and other conditions continue to threaten progress in negotiations.
US President Donald Trump said on Sunday that renewed American military strikes against Iran were highly unlikely if negotiations produced a strong agreement.
However, US Secretary of State Marco Rubio maintained that both countries remained far from a breakthrough, describing some of Tehran’s demands as unacceptable.
Iranian Foreign Minister Abbas Araghchi, meanwhile, indicated that Tehran was prepared to reopen the Strait of Hormuz within two days, provided the war ended across all fronts.
Despite the diplomatic signals, uncertainty continues to weigh on the oil market. Shipping activities through the strait have yet to fully recover, following renewed reports of attacks on vessels in and around the strategic waterway over the weekend.
For Nigeria, the continued decline in international crude oil prices could offer a potential reprieve for motorists, transport operators and businesses battling elevated petrol costs since the conflict erupted on February 28, 2026.
A sustained fall in global oil prices, particularly if accompanied by the restoration of normal shipping through the Strait of Hormuz, could ease international supply pressures and create room for adjustments in domestic petrol prices.
The development could prove particularly significant as economic activities and fuel consumption begin to rise ahead of the Yuletide season.
However, any meaningful reduction in petrol prices in Nigeria will depend on sustained declines in crude oil and refined petroleum product costs, exchange-rate movements, importation and domestic supply conditions.
