Global oil prices eased on Wednesday as positive signals from ongoing peace negotiations between the United States and Iran raised hopes of de-escalation in the Middle East conflict.
Brent crude dropped by about $6 to $105 per barrel, while West Texas Intermediate (WTI) crude fell to $98 per barrel, according to data from Oilprice.com.
The decline followed statements by US President Donald Trump, who said negotiations with Iran were in their “final stages.”
Trump, however, warned of further attacks if Iran fails to reach a deal.Iranian officials also indicated readiness to cooperate on safe shipping protocols in the region.
Despite the optimism, analysts remain cautious, citing persistent supply disruptions, particularly through the Strait of Hormuz.
Some market experts warned that Brent crude could still climb to $120 per barrel in the near term, while others projected prices approaching $200 if the strait remains largely closed for the rest of the year.
The US-Israel conflict with Iran, which began on February 28, has significantly restricted oil shipments through the Strait of Hormuz, a critical chokepoint that normally handles about one-fifth of global oil supply.
On Wednesday, a few supertankers carrying millions of barrels of crude successfully exited the strait bound for Asian markets after weeks of delays.
A continued decline in oil prices is expected to translate to lower fuel prices domestically in Nigeria.
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