Global oil prices fell sharply on Monday, retreating from recent highs after the United States and Iran reportedly suspended hostilities over the weekend, easing concerns about potential disruptions to global crude supplies.
Brent crude, the international oil benchmark, dropped 6.76 per cent to $90.24 per barrel, while US West Texas Intermediate (WTI) crude declined 6.04 per cent to $83.92 per barrel.
The decline followed reports that both Washington and Tehran had paused military strikes after nearly two weeks of escalating attacks.
On Sunday, US Ambassador to the United Nations Mike Waltz told journalists that President Donald Trump had decided to suspend US military operations against Iran to create room for diplomacy.
“He’s giving talks some space, he’s giving it a little bit of room,” Waltz said.
In a related development, a senior Iranian official told Reuters on Sunday that Tehran would halt its attacks provided the United States maintained its suspension of military action.
The latest decline reverses part of the recent rally that saw oil prices surge above $100 per barrel on July 23 amid reports of attacks on vessels in the Red Sea, raising fears of supply disruptions in one of the world’s most critical shipping routes.
The spike in crude prices has already filtered through to Nigeria’s downstream petroleum market, triggering increases in the price of petrol.
On July 23, Dangote Petroleum Refinery raised its ex-gantry price of premium motor spirit (PMS) from ₦1,075 per litre to ₦1,215 per litre, while also resuming the sale of petrol in naira.
Earlier, on July 16, fuel importers had announced plans to increase the depot price of petrol from ₦1,230 per litre to ₦1,350 per litre in response to rising international oil prices.
Boluwatife Enome
