ABUJA, Nigeria (VOICE OF NAIJA)-A sharp decline in global oil prices may be on the horizon if the United States and Iran successfully reach a deal that would lead to the reopening of the Strait of Hormuz.
As of Sunday, Brent crude traded between $103 and $105 per barrel, buoyed by optimism that both sides were moving toward ending the month-long conflict.
Market speculation has grown that reopening the strategic waterway could trigger a significant fall in crude oil prices, with a corresponding impact on petrol prices worldwide.
The New York Times reported that Washington and Tehran have reached a preliminary understanding to end hostilities in the Middle East by reopening the Strait of Hormuz and ensuring Iran disposes of its highly enriched uranium stockpile.
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Quoting a senior US official, the NYT noted that Iran’s leadership and state media have not issued any public response to the reported terms of the agreement or ongoing negotiations.
The official further stated that no formal deal has been signed, adding that it still requires final approval from US President Donald Trump and Iran’s Supreme Leader, a process that could take several days.
President Donald Trump had earlier indicated on Saturday that the Strait of Hormuz would be reopened under a proposed arrangement involving the United States, Iran, and other Middle Eastern countries aimed at ending the conflict.
He made the statement via his Truth Social platform following a series of discussions with leaders including those of Saudi Arabia, the United Arab Emirates, Qatar, Pakistan, Türkiye, Egypt, Jordan, Bahrain, and Israel.
According to Trump, negotiations had progressed significantly, though final agreement details were still being concluded between the parties involved.
He also confirmed that the final terms of the deal were still under discussion and would be made public once completed.
Addressing the strategic importance of the waterway, Trump noted that the Strait of Hormuz through which roughly 20 per cent of global oil shipments pass would be reopened.
Iran had shut down the strait since the outbreak of hostilities on February 28, a move that contributed to a surge in global oil and fuel prices.
In another post on Sunday, Trump said negotiations with Iran were progressing “in an orderly and constructive manner,” adding that he had instructed his team not to rush the process, stressing that time was on their side.
He also stated that restrictions on Iranian ports would remain fully in place until a final agreement is reached, insisting that “both sides must take their time and get it right.”
Trump further maintained that Iran must not be allowed to develop or acquire nuclear weapons under any circumstance, while describing relations with Tehran as increasingly “professional and productive.”
He also thanked several Middle Eastern nations for their cooperation and support in the ongoing diplomatic efforts.
Earlier, Trump disclosed that he had spoken with several regional leaders, including Saudi Crown Prince Mohammed bin Salman, UAE President Mohammed bin Zayed Al Nahyan, Qatar’s Emir Sheikh Tamim bin Hamad Al Thani, Pakistan’s Field Marshal Syed Asim Munir, Turkish President Recep Tayyip Erdoğan, Egyptian President Abdel Fattah El-Sisi, Jordan’s King Abdullah II, and Bahrain’s King Hamad bin Isa Al Khalifa.
He also confirmed a separate conversation with Israeli Prime Minister Benjamin Netanyahu, describing it as positive.
Trump reiterated that an agreement had been largely concluded but still required finalisation between the United States, Iran, and other involved nations, adding that the reopening of the Strait of Hormuz formed part of the broader deal framework.
The prolonged closure and rising tensions around the Strait of Hormuz have previously disrupted global oil supply chains and heightened fears of wider conflict in the Middle East.
In Nigeria, the ripple effects were felt in fuel prices, which rose from N830 to over N1,300, while a potential drop in global crude prices could ease domestic fuel costs.