Global crude oil prices recorded a significant decline on Monday after United States President Donald Trump announced a peace deal with Iran, raising hopes of stability in the Middle East.
In a statement posted on his Truth Social platform, Trump declared an end to hostilities around the Strait of Hormuz following the agreement with Iran. He also directed the immediate removal of the US military blockade in the strategic waterway.
The announcement triggered a swift reaction in the global energy market, with crude oil prices falling by nearly five percent. Brent crude dropped to $83.88 per barrel, while West Texas Intermediate (WTI) fell to $81.12 per barrel.
The latest decline marks one of the sharpest drops since tensions between the US, Israel and Iran escalated on February 28, 2026, a conflict that had pushed global energy prices higher.
The impact of the Middle East crisis has been felt strongly in Nigeria, where the prices of Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO) have almost doubled over the past three months.
In Abuja, petrol has been selling between N1,317 and N1,365 per litre, while diesel prices have hovered around N1,900 per litre and, in some locations, exceeded N2,000 per litre.
Analysts say the easing of tensions in the region could provide relief for global oil markets and potentially slow the rise in fuel prices in oil-importing countries.
