US-Iran oil price decline raises hopes of lower petrol prices in Nigeria as Brent crude drops amid ceasefire negotiations

Fresh diplomatic engagement between the United States and Iran on Thursday, May 28, 2026, triggered a sharp decline in global crude oil prices, raising expectations of possible reductions in petrol prices across Nigeria if the trend continues.

Also read: Fuel prices may fall as crude oil slumps on US-Iran talks

Brent crude fell to about $93 per barrel on Thursday from nearly $95 recorded a day earlier after reports emerged that both countries were close to reaching a 60-day memorandum of understanding aimed at extending a ceasefire and opening negotiations on Iran’s nuclear programme.

According to reports published by Axios, negotiators from Washington and Tehran had reportedly agreed on the framework of the proposed arrangement, although President Donald Trump was yet to give final approval while Iranian authorities had not formally confirmed acceptance.

The US-Iran oil price decline followed growing optimism among traders that the proposed agreement could ease geopolitical tensions in the Middle East and improve global crude supply stability.

The reported deal is expected to guarantee unrestricted shipping through the Strait of Hormuz, one of the world’s most strategic oil transit corridors, which has experienced heightened tensions in recent months.

Axios reported that the arrangement could also involve phased easing of the US naval blockade, sanctions waivers permitting Iran to resume unrestricted oil exports and broader discussions on sanctions relief and humanitarian support.

Global oil traders responded positively to the diplomatic breakthrough, with analysts noting that expectations of increased supply and reduced regional instability immediately weighed on crude prices.

The US-Iran oil price decline has renewed hopes among Nigerians that domestic petrol prices may soften in the coming weeks, especially if international crude prices continue to ease.

Nigeria, despite being one of Africa’s leading oil producers, remains highly exposed to global oil market fluctuations and foreign exchange volatility, factors that significantly influence local fuel prices.

In recent months, petrol prices have remained elevated following the removal of fuel subsidies and the deregulation of the downstream petroleum sector.

The development also comes after the Dangote Petroleum Refinery adjusted petrol prices upward amid earlier spikes in crude oil costs linked to tensions between the United States and Iran.

Energy analysts have repeatedly stated that international crude prices play a critical role in determining gantry prices and retail fuel costs within Nigeria’s deregulated market.

One United States official quoted by Axios described the proposed agreement as a starting point for broader negotiations.

“This is an agreement to get everybody to the table. We will work out the details in the negotiations,” the official said.

The report added that both governments would use the proposed 60-day negotiation period to discuss Iran’s enriched uranium stockpile, sanctions relief and the release of frozen Iranian funds.

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The easing of tensions around the Strait of Hormuz is widely viewed by investors as a powerful signal of improved energy supply stability, with markets closely monitoring the outcome of the ongoing talks.