Nigerian Crude Falls Below $95/b After War Temporary Ceasefire
Global crude oil prices, including Nigeria’s Bonny Light, have dropped sharply after the United States and Iran agreed to a two-week ceasefire, halting military action and reopening the vital Strait of Hormuz. The strait, through which around 20% of the world’s oil and gas supplies pass, had been a flashpoint in escalating tensions that pushed oil prices above $130 a barrel in recent weeks.
The agreement came just before a deadline set by U.S. President Donald Trump, who had threatened severe consequences if the waterway remained closed. Under the terms, both sides agreed to a “double-sided ceasefire,” with safe passage restored through the strait while negotiations continue. Trump described the arrangement as a “workable” step toward long-term peace in the Middle East.
Market reaction was swift. U.S. West Texas Intermediate crude futures fell nearly 20%, settling around $96.31 a barrel, while Brent crude dropped 13% to about $94.71. The de-escalation also triggered a rally in global stock markets, with major Asian indices surging—Japan’s Nikkei jumped 5.4%, South Korea’s KOSPI vaulted 6%, and other regional markets saw similar gains.
Pakistan’s Prime Minister Shehbaz Sharif, who mediated the talks, said the ceasefire would begin immediately and include a halt to all military operations, including in Lebanon. However, Israel clarified that while it supported suspending strikes on Iran, the ceasefire did not extend to its ongoing operations in Lebanon.
The temporary truce has provided immediate relief to energy markets and raised hopes for a broader diplomatic resolution, though uncertainty remains over the durability of the ceasefire and the future stability of global oil supplies.
