Global oil prices recorded a noticeable decline after former United States President Donald Trump announced a temporary suspension of a maritime security operation in a key oil shipping route.
The development sparked cautious optimism among investors and traders who believe the decision could reduce rising tensions in one of the world’s most important oil transit corridors.
Following the announcement, Brent crude fell to around $101.1 per barrel from nearly $110 recorded earlier in the week. West Texas Intermediate (WTI) crude also dropped below the $100 mark, trading at approximately $95.34 per barrel at the time this report was filed.
In a statement shared on social media, Trump disclosed that the United States and other involved parties had mutually agreed to pause the maritime operation known as “Project Freedom.” According to him, the temporary suspension is aimed at creating room for negotiations that may eventually lead to a broader agreement.
He explained that although restrictions and blockades in the region remain active, the pause would serve as a test period to determine whether diplomatic talks can produce a lasting resolution.
The announcement came shortly after the U.S. military introduced the escort initiative to protect commercial vessels passing through the tense oil route. The United States Central Command had earlier confirmed that American destroyers escorted merchant ships through the strait due to growing security concerns.
However, tensions remain high.
Iran reacted strongly to the U.S. presence in the region, warning that American naval forces could become targets if the situation escalates further. Tehran also claimed it fired warning shots at a U.S. warship operating in the area, although U.S. officials dismissed the claim.
Initially, oil prices weakened after Trump’s first announcement regarding the operation. But fears of possible supply disruption returned after Iran’s threats, causing temporary rebounds in the market.
Even with the latest decline in crude prices, analysts say uncertainty still surrounds the global oil market because there is no confirmed peace agreement yet. Concerns over supply stability and geopolitical tensions continue to influence price movements worldwide.
In Nigeria, many citizens are closely monitoring the situation, hoping that the reduction in global crude oil prices could eventually lead to lower fuel prices locally. Nigerians have continued to face rising transportation costs, expensive logistics, and an increasing cost of living in recent months.
Meanwhile, [Dangote Petroleum Refinery and Petrochemicals Limited has maintained that the price of Premium Motor Spirit (PMS), commonly known as petrol, remains unchanged.
The company stated that its ex-depot price is still fixed at N1,275 per litre.
According to the refinery, maintaining the current price reflects its commitment to supporting stability within Nigeria’s energy market despite global uncertainties. The company noted that it continues to absorb various production and operational cost pressures in order to reduce the impact of inflation on consumers.
The refinery also said its efforts are aimed at ensuring energy affordability, stable supply, and protection of the wider economy from external shocks affecting international oil markets.
Furthermore, the company reaffirmed its commitment to supplying high-quality petroleum products consistently across Nigeria while supporting national goals related to energy security and price stability.
Dangote Refinery advised the public to rely only on official communications from the company regarding pricing and operational updates to avoid misinformation.
