Nigerian oil slides below $95 after US-Iran ceasefire deal

Nigerian crude oil and major global oil contracts fell below $95 per barrel on Wednesday after Iran agreed to reopen the Strait of Hormuz for two weeks in exchange for a temporary ceasefire with the United States.

The Strait of Hormuz is a vital route through which about 20% of the world’s oil supply passes, making it a key factor in global energy security.

Brent crude and West Texas Intermediate (WTI) also dropped by more than 15% at the time of publication.

Bonny Light, a major Nigerian crude grade, had previously increased sharply since the start of the Middle East conflict involving the US.

The fall in prices reflects the easing of fears over a prolonged disruption in oil shipments through the strait.

US and Iran Move Toward Ceasefire

President Donald Trump announced the temporary pause in attacks on Iran following a request from Pakistan, which acted as a mediator in the conflict. The agreement gives both countries time to negotiate a more comprehensive deal to end the six-week conflict, which has already caused thousands of deaths and triggered a global energy crisis.

Trump said that if Iran fully reopens the Strait of Hormuz, the US will suspend bombing and attacks for two weeks. Iranian Foreign Minister Abbas Araghchi confirmed that Iran’s forces will coordinate safe passage through the strait and halt defensive operations during this period.

Iran has also sent a 10-point proposal to Washington aimed at a full ceasefire. Officials from both countries are scheduled to discuss the plan in Islamabad on April 10. Key Iranian demands include controlled and coordinated transit through the Hormuz Strait.

Regional Support

Israel reportedly agreed to the ceasefire, although some Gulf states claimed Iran was still carrying out attacks, creating uncertainty about when the truce would take effect.

Pakistan’s Prime Minister Shehbaz Sharif asked both sides to extend the ceasefire by two weeks to allow diplomacy to continue and urged Iran to cooperate fully.

The developments have raised hopes that tensions in the region could ease. Analysts say this could stabilize global oil markets after weeks of volatility caused by fears of long-term disruption to energy flows through the Strait of Hormuz.