Global oil prices fell sharply on Monday after former US President Donald Trump stepped back from earlier threats to attack Iranian power plants.
The development has raised some hope for the global economy, which has been under pressure from rising fuel prices.
The drop in prices followed signs that the United States and Iran are opening talks. As a result, markets quickly reduced the extra risk premium they had added to oil prices, which had pushed crude above $100 per barrel in recent days.
Trump said Washington and Tehran had āproductiveā discussions over the weekend aimed at ending the ongoing tensions.
In a post on Truth Social, he added that he had ordered a temporary halt to planned military strikes on Iranās power facilities.
Following this announcement, oil traders reacted swiftly. Brent crude prices dropped as fears of supply disruptions in the Middle East eased.
Brent crude, which was selling at $112 per barrel a day earlier, fell to $102.8 at the time of this report, an 8.3% decrease.
The price of petrol, also known as PMS, has climbed above N1,400 per litre in Nigeria.
Fuel prices have nearly doubled since tensions in the Middle East began about four weeks ago, making the cost of living even harder for many Nigerians.
However, the easing of tensions could help prevent a wider energy crisis, which might have led to even higher import costs and increased inflation in Nigeria.
Global oil prices drop as Trump halts strikes against Iranian power plants
Ā