Global oil prices fell to $83 per barrel on Monday following a peace agreement between the United States and Iran, easing concerns over supply disruptions in the Middle East.

Brent crude declined from about $87 per barrel on Sunday after both countries announced a ceasefire and plans to reopen the Strait of Hormuz, a key route for global oil shipments. The agreement is expected to improve oil supply and reduce market uncertainty.

The conflict, which began in February, had pushed crude prices above $100 per barrel and at times beyond $120 per barrel, contributing to higher fuel costs worldwide.

The decline in crude prices has raised hopes of lower petrol prices in Nigeria. Industry stakeholders say pump prices could fall further if oil prices continue to soften, although refiners and marketers are still working through inventories purchased at higher crude costs.

The US and Iran are expected to continue negotiations over the next 60 days, with discussions covering issues such as Iran’s nuclear programme and the possible release of frozen Iranian assets. Analysts believe a lasting peace deal could support further stability in the global oil market and help keep energy prices lower.