Oil Drops to $92 Following Trump’s Announcement of Two-Week Ceasefire Deal with Iran

Oil prices have dropped significantly to $92 per barrel following Trump’s announcement of a two-week ceasefire agreement with Iran regarding the reopening of the Strait.

Oil prices fell to $92 per barrel on Wednesday following US President Donald Trump’s announcement of a two-week ceasefire agreement with Iran, dependent on the safe reopening of the Strait of Hormuz.

Nigeria’s benchmark, Brent crude, fell 15.5 percent to $92.28 per barrel, losing nearly $17 and recording its sharpest daily drop since April 2020, amid the COVID-19 pandemic.

After several hours, prices experienced a modest recovery, with Brent climbing to $94.44 per barrel following a decline of $14.83, which represents a decrease of 13.57 percent. West Texas Intermediate (WTI) futures experienced a significant decline, decreasing by $17.92, or 15.87 percent, to $95.03. During the height of the crisis, oil prices soared to $120 per barrel.

European natural gas prices declined by 20 percent at market opening in Amsterdam, indicating reduced concerns after the ceasefire announcement, which may facilitate the reopening of the Strait of Hormuz.

Nevertheless, ambiguity persists in the liquefied natural gas (LNG) market. For more than a month, no LNG cargo has traversed the Strait, following the abandonment of exit attempts by two vessels carrying Qatari LNG — a situation that has hindered exports since the onset of the conflict.

Even with the market relief, challenges related to physical supply in the LNG market continue to exist.

Shipping sources revealed that the Iranian navy had issued threats to destroy vessels trying to navigate through the Strait of Hormuz without Tehran’s consent, effectively keeping the crucial route closed.

Iran has signaled that it will stop its attacks if the strikes against it end, stating that safe passage through the Strait could be ensured for two weeks with coordination from its armed forces, as reported by Foreign Minister Abbas Araqchi.

A senior Iranian official informed Reuters that the Strait may reopen in a restricted and regulated way prior to the scheduled discussions between US and Iranian officials in Pakistan.

Shippers and refiners remained focused on gaining clarity regarding logistics and crude loadings in the aftermath of the ceasefire announcement.

Trump stated that the US had received a 10-point proposal from Iran, characterizing it as a feasible framework for negotiations and highlighting that both parties were making strides towards a long-term peace agreement.

In the meantime, Nigeria achieved notable increases in crude oil production due to enhanced pipeline security in the Niger Delta.

Bayo Ojulari, the Group Chief Executive Officer of NNPC, announced that production increased from 960,000 barrels per day in 2022 to an average of 1.71 million barrels per day, peaking at 1.84 million barrels per day in 2025.

Ojulari said the growth was due to a detailed energy security plan that combines laws and policies, useful information, active response abilities, regulatory supervision, teamwork within the industry, and local monitoring systems.

He stated that addressing oil theft and pipeline vandalism has renewed investor confidence in Nigeria’s oil and gas sector.

During a parliamentary roundtable in Abuja, Senate President Godswill Akpabio, represented by Senator Jimoh Ibrahim, emphasized the need for enhanced collaboration among stakeholders to tackle production challenges.

The Speaker of the House of Representatives, represented by House Leader Julius Ihonvbere, highlighted the importance of evaluating progress to guarantee fairness and equity.

The roundtable convened leading government officials, security agencies, and industry stakeholders, featuring the Chief of Defence Staff, the Inspector General of Police, and representatives from private security firms.

Exxon Mobil has projected that increased oil and gas prices associated with the conflict could enhance its first-quarter upstream earnings by up to $2.9 billion.

Nonetheless, downstream earnings could experience a decline of approximately $5.3 billion due to timing effects, with anticipated gains in the following quarters as shipments are fulfilled.

The company announced that its oil and gas production is expected to decrease by 6 percent in the first quarter compared to the previous quarter, during which it produced 5 million barrels of oil equivalent per day.

In 2025, assets in Qatar and the UAE represented 20 percent of Exxon’s total global oil production.

Exxon is set to unveil its complete first-quarter results on May 1, as investors keenly observe the report for indications regarding the overall performance of the oil sector.