Global crude oil prices tumbled sharply below the $100 per barrel mark during early Asian trading on Wednesday, following a ceasefire announcement by Donald Trump regarding the ongoing tensions with Iran.
As of Wednesday morning, West Texas Intermediate (WTI) fell by 14.44 percent to $96.64 per barrel, while Brent Crude dropped by 12.97 percent to $95.
The steep decline came after Trump revealed a conditional two-week ceasefire, pledging to halt U.S. military operations if Iran immediately restores unrestricted access to the Strait of Hormuz.
Announcing the move on social media, Trump described the development as a “double-sided ceasefire,” a notable shift from his earlier warning of severe consequences should Iran fail to meet U.S. demands.
Iran’s Foreign Minister, Abbas Araqchi, also signaled readiness to de-escalate, stating that Tehran would suspend attacks once strikes against Iran cease and maritime movement through the Strait is managed in coordination with Iranian authorities.
The latest downturn in oil prices follows a recent surge above $105 per barrel, triggered by escalating geopolitical tensions and Trump’s earlier ultimatum on the reopening of the vital shipping route.
The previous spike had prompted the Dangote Refinery to raise its petrol gantry price to N1,275 per liter on Tuesday.
With crude prices now falling, the 650,000-barrel-per-day facility is expected to review its pricing downward, offering potential relief to Nigerians currently purchasing petrol between N1,290 and N1,350 per liter in Abuja.
