Fresh diplomatic efforts between the United States and Iran have pushed global oil prices lower, raising expectations of a possible reduction in petrol prices in Nigeria.

Brent crude dropped to $93 per barrel on Thursday, down from around $95 on Wednesday, following reports that Washington and Tehran were nearing a 60-day memorandum of understanding aimed at extending a ceasefire and reopening discussions on Iran’s nuclear programme.

According to reports by American news platform Axios, negotiators from both countries had agreed on the framework for the proposed deal. However, US President Donald Trump was yet to give final approval, while Iran had not officially confirmed its position as of the time of filing this report.

The proposed agreement is expected to guarantee free movement of ships through the Strait of Hormuz, one of the world’s most important oil transit routes that has experienced growing tensions in recent months.

Axios also reported that the deal could involve a gradual easing of the US naval blockade, sanctions waivers allowing Iran to export oil more freely, and broader negotiations on sanctions relief and humanitarian assistance.

The development quickly influenced the global oil market, with investors reacting positively to expectations of increased crude supply and reduced geopolitical tension in the Middle East.

The decline in crude prices has renewed hopes among Nigerians that domestic petrol prices may fall in the coming weeks if the trend continues.

Although Nigeria is a major oil-producing country, the local fuel market remains heavily affected by fluctuations in global crude prices and foreign exchange rates. Petrol prices have remained high since the removal of fuel subsidies and the deregulation of the downstream sector.

Recently, the Dangote Petroleum Refinery adjusted petrol prices upward as tensions between the US and Iran contributed to rising crude oil prices. Energy analysts have consistently maintained that changes in global crude prices directly affect local fuel costs.

The Strait of Hormuz remains a strategic channel for global oil exports, and any reduction in tensions around the route is generally viewed as positive for global energy supply stability.

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

The report added that both countries would use the 60-day negotiation period to address issues surrounding Iran’s highly enriched uranium stockpile, enrichment activities, sanctions relief, and the release of frozen Iranian assets.