The price of Nigerian crude oil crashed below $95 a barrel on Wednesday following Iran’s agreement to reopen the Strait of Hormuz for two weeks in exchange for a temporary ceasefire with the United States.
Brent crude and WTI were also down by more than 15 per cent.
Bonny Light, a major Nigerian crude, increased by more than half since the Middle East conflict between the United States.
President Donald Trump announced on social media on Tuesday, just hours after Pakistan, a negotiating mediator, pleaded with the US leader to rescind his threat to unleash massive destruction on Iran if it did not comply with his demands.a
The agreement buys time for the two sides to come to a more comprehensive agreement to put an end to the six-week conflict, which has resulted in thousands of deaths and a worldwide energy crisis.
If Iran consents to “the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz,” Trump claimed he had agreed “to suspend the bombing and attack of Iran for a period of two weeks.”
Iranian Foreign Minister Abbas Araghchi said that “safe passage through the Strait of Hormuz will be possible via coordination with Iran’s Armed Forces for a period of two weeks” and that “our Powerful Armed Forces will cease their defensive operations” if attacks against Iran are stopped
Additionally, Trump acknowledged that Iran had sent Washington a 10-point proposal that could be negotiated for a full ceasefire.
