Global Market Watches Key Developments
A major drop in oil prices may happen if the United States and Iran reach a final agreement to reopen the Strait of Hormuz.
The development could ease pressure on global crude supply and reduce fuel prices.
As of Sunday, Brent crude hovered between $103 and $105 amid growing optimism over possible peace talks.
Proposed Deal Sparks Market Speculation
Reports suggest that reopening the strategic waterway could trigger a decline in oil prices.
As a result, analysts expect possible relief in petrol prices if supply improves.
The Strait of Hormuz remains one of the world’s most important oil routes.
US and Iran Reportedly Reach Preliminary Understanding
According to reports by The New York Times, the United States and Iran have agreed in principle to a deal.
The agreement could help reduce tensions in the Middle East.
It may also reopen the Strait of Hormuz and require Iran to dispose of highly enriched uranium.
However, Iran’s leaders and state media have not publicly confirmed the details.
Final Approval Still Pending
A senior US official reportedly said both sides have not signed the deal.
The source explained that President Donald Trump and Iran’s supreme leader must still approve the agreement.
That process could take several days.
Therefore, uncertainty remains over final implementation.
Trump Signals Progress in Talks
Trump earlier said the Strait of Hormuz would reopen under the proposed agreement.
He shared the update on Truth Social after discussions with several Middle East leaders.
According to him, talks with Iran are moving in an orderly and constructive direction.
He also said negotiators should avoid rushing the process.
Regional Leaders Join Diplomatic Push
Trump said he held talks with leaders from Saudi Arabia, the United Arab Emirates, Qatar, Pakistan, Türkiye, Egypt, Jordan, Bahrain, and Israel.
He added that these discussions focused on regional stability and peace efforts.
Meanwhile, he described his separate call with Israeli Prime Minister Benjamin Netanyahu as productive.
Strait of Hormuz Remains Critical to Oil Supply
The Strait of Hormuz handles nearly 20 per cent of global oil shipments.
Its closure during the conflict disrupted supply chains and pushed crude prices higher.
As a result, global markets reacted with concern over wider instability.
Nigeria Could See Petrol Price Relief
Higher global crude prices affected fuel costs in Nigeria.
Petrol prices reportedly climbed from N830 to over N1,300 during the crisis.
However, a drop in crude oil prices could lower fuel prices if the supply route reopens.
Talks Continue Amid Economic Pressure
Trump said the US would maintain restrictions on Iranian ports until a final agreement is reached.
He also insisted Iran must not develop or acquire nuclear weapons.
Meanwhile, markets continue to watch the talks closely as any breakthrough could reshape global energy prices
