Fuel prices in Nigeria may soon reduce following a sharp decline in global crude oil prices, driven by easing tensions between the United States and Iran.

International oil benchmark Brent crude, which had climbed above $110 per barrel in recent weeks, fell to below $100 on Monday. The drop has raised expectations that pump prices could come down if the trend continues.

The fall in prices is linked to renewed diplomatic talks between the United States and Iran, with reports suggesting progress toward reopening the Strait of Hormuz, a key route for global oil shipments. The waterway handles a large share of the world’s crude exports, and any improvement in stability there often affects global energy prices.

Crude oil prices had surged earlier this year after conflict escalated in the Middle East, pushing fuel costs higher across many countries. In Nigeria, petrol prices rose from about N830 per litre to around N1,300, with diesel and aviation fuel also increasing significantly.

The recent downward movement in oil prices has raised hopes among industry players that local fuel prices could be reviewed. Attention is also on the Dangote Refinery, which plays a key role in domestic fuel supply and pricing.

Former US President Donald Trump said talks involving the US, Iran, and several Middle Eastern countries were progressing, adding that discussions on reopening the Strait of Hormuz were underway as part of a broader peace effort.

Iranian officials have also confirmed that negotiations are ongoing, though they stressed that a final agreement has not yet been reached.

The Strait of Hormuz, through which a significant portion of global crude oil passes, remains central to global energy stability. Any resolution easing tensions in the region is expected to influence oil supply and pricing worldwide.