Global crude oil prices have dropped sharply, raising fresh hope for a reduction in petrol prices in Nigeria. The decline comes amid easing tensions linked to developments in the Middle East.

The price fall followed a decision by Donald Trump to extend the deadline given to Iran over the reopening of the Strait of Hormuz. This move helped calm fears of supply disruption.

Market data showed that Brent crude dropped by about 8 percent to around $103.7 per barrel, while West Texas Intermediate fell by 7 percent to about $91.38. The sharp decline reflects improved investor confidence.

Despite earlier claims by Trump about ongoing talks, Iranian authorities have denied any communication. However, the delay in potential military action has reduced pressure on global oil markets for now.

In Nigeria, the recent oil price drop may bring relief after fuel costs surged in recent weeks. The Dangote Refinery had increased its price to N1,245 per litre, pushing retail prices above N1,300 in some areas.

With crude prices now falling, expectations are growing that petrol prices could be adjusted downward. Nigerians are hopeful that the easing global situation will soon reflect in lower pump prices nationwide.